Speaking to people around the traps this morning, it actually doesn’t even sound like it was a fat finger as such. It is a break of a daily trend line that has been in play since 2015 and it just happened to line up with the previous swing low from 2016.
There would have been a tonne of stops sitting just below this level and in illiquid Asian session trading, we know things can get out of hand quite quickly when sell orders all start triggering with nobody in sight to buy.
Take a look at what I’m talking about on the XAG/USD daily chart below:
Silver flash crash.
Gold Today –New York closed yesterday at $1,225.30. London opened at $1,224.00 today.
Overall the dollar was slightly weaker against global currencies, early today. Before London’s opening:
– The $: € was almost unchanged at $1.1353 after yesterday’s $1.1356: €1.
– The Dollar index was slightly weaker at 96.22 after yesterday’s 96.25.
– The Yen was stronger at 113.33 after yesterday’s 113.51:$1.
– The Yuan was weaker at 6.8037 after yesterday’s 6.7988: $1.
– The Pound Sterling was stronger at $1.2935 after yesterday’s $1.2908: £1.
As traders of supposed liquid and stable markets like forex, commodities and indices, we sometimes find ourselves looking down on the crypto space because of flash crashes like what we saw in Etherium not so long ago. All this does is highlight the risks that we face across ALL markets.
Don’t be arrogant, don’t be reckless and remember as always…
Best of probabilities to you.