We end the week taking a look at the position I actually did execute using our Pound Yen example.

What position did I execute?

My position of Nothing.

Being Flat.

Zero.

How did I accomplish this amazing feat of discipline?… LOL

 I will tell you!

Since we defined my rationale and view with yesterday’s post as being Bearish…my criteria was I could ONLY sell into strength.

(This is “my” Rule here….it works for me as I prefer to have concrete criteria in my trading Plans…I do not deviate from them.)

These two charts show where we are as of this writing, and illustrate some Price action that supports my Bearish view.

(Click once to view the captures)

( Sorry…4-Hour Chart here…as you can see…)

“But CVJ!…Why did you not trade within that bullish Channel?…”

You know…I am glad you asked!

“Here’s why!”

 Look at the Channel….see the noise and chop of the fractal Price action?

Now…how many times would have I been stopped out of maintaining my Bearish view?

The massive Daily downtrend was Price action I simply would not go against!

Insert “built-in Lesson” here:

This DOES NOT mean you can’t!

I am deeply sure many Traders have worked within this Channel beautifully over the past couple of days…believe me! 

Many of my personal Mentors I have worked with prefer this exact “contrarian” view….meaning a view that is going counter to our larger trend.

It is all about what you are completely and instinctively comfortable with.

For me…it was about where I saw the global strength on this Chart.

We have a 5000+ pip downtrend over the course of one month…..or we have a 2000+ pip uptrend over the course of a few days.

Which was stronger to me?…Which had the higher probability for MY comfort?…

The Downtrend.

So that, Ladies and Gentleman, is why I did nothing.

And that is why I continue to monitor the pair and wait…wait for what is comfortable for me.

P.S. - Of course, I cheated a bit……because I did not tell you what I did on the pair LAST week…more on that next time…