On Wednesday I wrote about the NZDUSD trading plan and how The SF Box played an important role in defining the trading plan.
The original trading plan was easy to implement:
- If it breaks the top of The SF Box I’ll look for long
- If it breaks the bottom of The SF Box I’ll look for shorts
- If it continues to trade inside The SF Box, I’ll trade range
This is how the chart looks today:
It was rejected from the bottom of The SF Box, and what did the plan said about this scenario? Trade the range…
When you look at the chart today it’s obvious, and looks very easy. But it looks this way only on hindsight. Back on Wednesday, it wasn’t that obvious.
This is why it is very important to use The SF Box, it’s a simple concept, but it could help you have a tremendous impact on your trading results, it could actually help you trade with consistent results.
What do you think?
By the way, did you trade the NFP report?
Have a great weekend!