Trading week 19/9/11

As suspected from my previous post, the USDX broke up and the EURX broke down at market open. I have received some signals on a number of charts and I have taken these trades this morning, that is, during the Asian session.

I have reservations about these trades though for the following reasons:

1. There were gaps at market open which often reverse and get filled.

2. The Asian session is often difficult to trade due to low liquidity.

3. There is a Japanese holiday today which often affects JPY pair trades.

Having stated this however, I am committed to taking signals when they appear on my charts..."Plan the trade and trade the plan". My system works in a majority of cases and that underpins my trading strategy, along with good risk management. I have also taken trades today on correlated pairs but have adjusted the risk accordingly. You can check out for Forex pair correlation at: http://www.forexticket.co.uk/en/tools/01-01-correlation

The trades I have taken today:

Short: E/U, E/G, E/J and G/U

Long: USD/SGD

I will provide updates on these trades as they progress.

Update Tue 20.9.11:

Long USD/SGD: closed for 100 pip profit

Short E/J: closed for 100 pip profit

Short G/U: closed at b/e (trade went sideways)

Short E/U : closed for 46 pips. (closed due to volatility re:Greek debt)

Short E/G: closed for 59 pips. (closed due to volatility re:Greek debt)

Total pips= 306!

My weekly target is only 100 pips! I will trade carefully, if at all, until the end of this week.

Update Wed 21/9/11

Many of the pairs are just drifting along in a sideways movement. I suspect this may continue until after the FOMC meeting, scheduled for early Thurs am here in Sydney. This sideways movement has been good for my TS system though. It has enabled the ADX to get back to the waterline level of 20. Thus, the next big moves on these pairs will be much easier to evaluate and trade on.

Update Thurs 22/9/11

I have woken to find that big moves have occurred on some of the pairs due to the Fed statement overnight. I have signals to short the A/U, G/J and A/J and to long the USD/CAD. These pairs have made huge moves in the last 4 hours though and, so, some pullback might be expected. Also, the U/C will close above parity for the first time in many, many months! I mentioned earlier that I will be conservative for the remainder of the week as I have already made my weekly target. Of all of the signals I am choosing to long the U/C. I have an order in to go long at 1.004 as I anticipate some retrace given the significant break of the 1.00 level. Why choose the U/C? Well...I am cautious trading about Yen pairs as there is always the chance that the BOJ will intervene. The A/U and A/J are trading within symmetrical triangles and both are approaching the bottom trend line of these. Thus, a bounce might (or might not!) be due. Thus, a Long on the U/C looked the best choice of these pairs.

Update Fri 23/9/11

Another ringing endorsement for my TradeSpotting (TS) system. These are the current updated results for the trades that were signaled yesterday by my TS system:

Short A/U: up 350 pips

Short A/J: up 280 pips

Short G/J: up 230 pips

Long U/Cad: up 230 pips.

Unfortunately, I missed my entry into the USD/CAD as I was anticipating more of a pullback. Lesson learned: enter on candle close and set a larger stop. Then, you don't miss the move.

Week ended Fri 23/9/11

Another great week using TradeSpotting on FX.

I caught 306 pips and my TS system yielded more than 1000 pips in subsequent trade signals.