One trading session left. That’s all Wall Street has before Tuesday as US voters choose their next president, and here is ur Trading strategy for EURO/USD pair based on Seasonality.
Election Day to Immediate Aftermath (Days 0 to 5):
Around the election day, there is some volatility but without a clear directional trend in the immediate days after the election.
Post-Election Rally (Days 5 to 30):
From around day 5 onwards, the EUR/USD starts a strong upward trend that continues until day 30, suggesting a period of strength for EUR/USD post-election.
Post-Election Long Position:
Entry: Initiate a long position around day 5 after the election, when the trend historically shifts upward.
Exit: Hold the position until day 30 to capitalize on the post-election rally.
Risk Management:
Stop Loss: For both the short and long positions, set a stop-loss slightly beyond recent highs/lows to manage potential volatility.
Position Sizing: Given the increased volatility around election day, consider smaller position sizes or hedging strategies to mitigate risk.
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Sagar Chaudhary
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Since this is based on historical trends, closely monitor the economic environment around the election period, as unique geopolitical factors may influence the trend differently. Disclaimer: The views and opinions expressed in this recommendation are solely my own and do not constitute financial advice. They are provided for informational and educational purposes only and should not be construed as a recommendation to buy or sell any specific security or engage in any particular investment strategy. Investing in the stock market involves inherent risks, including the potential loss of principal. Past performance is not indicative of future results. You should always conduct your research and consult with a qualified financial advisor before making any investment decisions. I am not responsible for any losses or damages that may result from the use of the information provided in this recommendation. Please remember that investment decisions should be based on your financial circumstances, risk tolerance, and investment objectives.
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