We had an exhaustion bar into a support level today and took some partial closes into the run up to the news for a 0.9% gain. the trade went 1 pip against us which makes for very comfortable trading, unfortunately the news went against us.
The euro trade I posted last night has worked out nicely as well If you had taken it. I did not because i was already in the gbp but you would have a 1% gain by now or stop to break even and let it run.
Trade level for tomorrow.... but just before I post this level a word of caution: you must validate your entries with your own personal strategies, it is no use trading levels blindly so please confirm with your trade entry setups whether it be volume, macd stochastics ema's trend etc.
Having said that you could have traded the euro all day long today off the pre-mentioned level and only had 3 pips draw down. when it's right, it's right
Ok Bit of a tougher day today but profitable none the less
I had a first entry just above the second buy level I mentioned yesterday and this was where the gbp was meant to launch from due to the fact that it was an inverted head and shoulders........
You may think this is quite a bold statement but its plain for everyone to see the inverted head and shoulders on the 1hr or 15 min chart which makes this open to market manipulation. If everyone can see this pattern then there is a large build up of stops just below Market as traders enter the market on the pattern. In order for the big players to fill their positions they need stops, hence the extra stop move down and then away the market goes.
I closed the position when i had a sell signal come in at 7112 which was unfortunate because it would have been a great day, however up 3% for the week and on target so can't complain. On to the next
Friday was a bit disappointing as i missed my trade by the spread!!!! and would have given me my 1% for the day.
I have posted and marked up the chart below to show what a stop run looks like. The over sized bars are traders covering their long positions as the market moves against them and if you can identify this before it happens, they can be some of the best trades in the market as the big players are loading up on positions for a directional move.
However being Friday and late in the afternoon you have to ask yourself is there going to be legs in this trade and more often than not the answer is no.
If you took the trade and moved your stop to break even, then well done you should have made a profit, certainly no loss and if you stood aside like me on the second pass then even better. It takes some discipline not to enter the market but trading can often be about the trades you do not take as opposed to the ones you do.
We have had 2 trades this morning. The euro, I will post later which i was stopped out for breakeven by the spread, otherwise it would have been a great start to the week and we have been short the gbpusd for +1.25%
I entered the market just a fraction too early on the eurusd before it reversed and then had a poor second entry which i decided to scratch for a 2 pip loss + commission. Really disappointing and was a great looking stop run but just ran a little too far for me.
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