Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Bearish Trade Setup in USDINR Daily Charts

35 sec read

USDINR Spot on the Daily charts had achieved the peak 65.56 per Dollar on 22nd August. The 22nd August candle formation on the EOD charts reflects a clear rejection at higher price level followed by a large directional move opposite the direction of the rejection. Thus forming a bearish rejection pin bar. i,e one that rejects higher prices and thus tips us off to take a short position or sell the USDINR pair in medium term. This setup will invalidated if market closes above 65.56 on EOD basis.

USDINR Daily Charts
USDINR Pin Bar

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Moreover the falling stochastic momentum indicates the trend get weaker than before. Also the 10 Year bond yields are falling from the peak from 9.23 levels. 10 year Govt Bond yields achieves it peak on 19th August. Decline in Bond prices normally attract FII inflows into the market and thus could boost INR strengthening against dollar. Probably increase in Interest rates could even attract more Foreign and NRI deposit into the country.

10 Year T-Bond Daily Chart
10 Year T Bonds

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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