Buying strength, selling weakness (extreme ends of the scale)
Risk: Australian employment report overnight (i.e. early Thu morning)
Here I had initially entered an order to pay 5070 (when it was trading 5080) – then price rallied to around 5100 and then pulled back. I decided to enter at 5085. Price dipped further to around 5075 and then rallied. So with this trade, I would not have been filled if I had waited for price to go to 5070.
At the time of writing this post, price had already rallied to a high of 5132 (+47 pips), which is the previous high (it has been touched three times in Dec) – so I will very shortly raise my stop to the entry level.