Good morning traders
KEY POINTS
The backdrop: the Fed held, two members voted for a hike.
The three: gold, AMD and EUR/GBP.
The rule: every idea is a line, and no line means no trade.
The Federal Reserve held rates on 28 October and two members wanted a hike. I read that as the next move being up. That's the backdrop for the week, and it shapes which ideas I'm willing to wait for.
The three
These are the three I'd choose from this week's board. I'm giving you the name and the type of trigger. Entry, stop and target stay in the paid Board.
Gold: a break up through a level. It sold off hard last week, so I'm not buying weakness.
AMD: a pullback, not a breakout. Its momentum is sitting right at the top of normal.
EUR/GBP: a break, but the trend is against it, so it's the smallest position of the three.
Before any trigger
Three questions, in this order:
Which way is the trend? Moving averages. Against me means a smaller position.
How stretched is it? Below 0.20 on the gauge is oversold, above 0.80 is overbought, between is neutral. At the top of neutral, I wait for a pullback.
What do I get for the risk? About twice the distance to my stop, or I leave it off the list.
What this does for you
If you trade without a line, you're reacting. The RB Journal logs each trade against the rule you wrote for it, so you can see which trades followed the plan and which were chases. The Trading Desk shows the free board, and the levels for these three are in Sunday's paid Board.
CPI lands on 10 November, so there's time for lines to break and fail before it.
→ Where does your own process leak? The investing quiz finds it.
Education, not financial advice. Past performance doesn't guarantee future results.