JOURNEY OF A INTRADAY FX TRADER – PART 3

Hey!

It looks like I’m on a roll now with getting these post up 😂 . Moving forward, I hope to be able to get out the post by the end of the day. 👀

Monday 24th was a European bank holiday, which I had noted down as a potential day for low liquidity. You never really know what the volume looks like for the day until after the fact. As someone who has spent his life analysing variables within the IT space, I get caught up in wanting to know everything before it happens. Trading does not always show you why an underlying move has happened, but there are ways to provide yourself with filters throughout the day.

My Swiss army knife toolset includes two indicators that monitor intraday price movement. Plus, one indicator which monitors intraday volatility.

  1. Session VWAP
  2. Anchored VWAP
  3. ATR

If you want to know more about how I use them, you can contact me via Tradingview, Telegram or Instagram ðŸ˜Š. 

At the start of the London sessions, the market continued trending. Over the years, I have learnt to not jump into the market on a Monday at 8 am. It is better to let the market settle and provide you with a good opportunity. On the other hand, these moves do offer a great opportunity to counter-trend trade. I would advise against counter-trend trading as this is a fool’s game, where you will get burned too often.

The first trade came in at 9.40 am, where GBPUSD dropped 20pips or more. When you see an aggressive fall in price, it actually looks terrifying, but in reality, it is a blessing in disguise. As you might be aware, I like to see aggressive volume come into the market at this point, which provides me with the indication to enter. 

The early part of the London session was significant for me, as my trade setups were clean. I have concluded that between 11 am until the US open, the markets are dead. If you take anything away from this post today, avoid trading between those times. What I have found is the forex market likes to consolidate before the US Open. You will find that there is no significant movement in those 2-3 hours, which will leave you fighting for prices. 

“Smart money makes money from dumb money.” 🕵🏾‍♂️

The US session started with a bang, and price moves out of the imbalance area I had defined the night before with aggressive buy-side volume. If you want to see my imbalance areas, then follow me on Tradingview, where I post updated daily imbalance areas. 

The takeaway for Monday’s trading is to have patience with the market. Some days the trades just won’t come, and that is just part of trading. On those days, I happily get to provide you with more content on this blog. 😎

“You only fail when you give up.”

With love from the Trading Dragon 🐉

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