Good morning traders.
The trade war jitters continue as yet another distraction comes from across the Atlantic. It’s difficult not to get involved with having an opinion on the matter, but I can’t help but think that there are more important issues at hand. So I will let price action on the side rather than my opinion. Right now price action is bearish and it seems that risk aversion is set to continue.
There is some positive news from Germany, as Germany says its highest number of job vacancies since 1990 and this now can be added to the historically low unemployment rate and expanding economy. It also seems that US billionaire Warren Buffett is entering into the Berlin’s real estate market.
Today we should be aware of the EU GDP number which is due out at 10 AM. There are also the US ADP numbers due out at 1:15. Check the economic calendar for more details.
I have marked out where the previous gap was on this chart. You can see the two horizontal lines below. I also like how the black sloping line seems to have called the top of this attempted to gap close. It is definitely possible that there will be another attempt to close the remaining gap, but I will leave this line there for now.
The chart below shows the swings. We can see the bearish impulse leg and the minor swings within that. I have drawn a 50% line through the middle of the impulse leg and notice the gap from yesterday appeared? I have marked up two different horizontals here, one at 105, and another at 948, these were previous minor swings that could be interesting to watch.
The gap from this morning retraced back up to the S1 and there was a reaction at this level. It was also roughly 50% of the gap which I find interesting as well. It is likely the gap will be tested again
Yesterday there were two opportunities to get along from the BBC RSI strategy. One hit the stop loss, and the other did not quite get the right reward to risk.
I have now coded an indicator for this strategy. I have now also coded an algo for this strategy. The indicator is available to use for premium subscribers