The US markets look as if they have started their move down to the June trough I wrote about last week, and as there doesn’t seem to be much else to say on that for the moment I thought I would post up a quick “trade of the week”.
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The trade is a short D-category trade in the EURUSD forex pair (for an explanation of D-category trades you should take a look at the Hurst Signals & FLD trading strategy information). Here is the trading opportunity emailed to me on Wednesday night:
The EURUSD has been describing some good clear cycle shapes recently, and so the trading opportunity looked like a good one. Here is a screenshot from the server that generates Hurst Signals showing what happened:
T1 is the first target, which was reached today. At that point our position size is reduced, and we take some profit, effectively reducing our risk on the trading opportunity to one-sixth of its original level.
The T2 target is the “cycle target”, generated by the cross of the FLD. That is the level the market is expected to reach as it forms the 40-day cycle trough.
Have a great week and profitable trading!
