Monday, September 26, 2011

Trading week 26/9/11

Weekly Summing Up
I only traded today, Thursday, but I made 194 pips using my TS system. Another great week for TradeSpotting!
Off for long w/e now so will be back on Tuesday of next week. The USDX and EURX are really chopping around in a sideways channel. This makes trading very difficult. I'll be glad to get away from them for a few days!

Thursday 29/9/11
The USD seems to be on the march upwards again and the EURX looks to be pulling back.
I have received signals to day to LONG the USD/CAD, EUR/AUD and GBP/AUD and to SHORT NZD/USD & Gold.
Some of these trades are correlated so you would need to manage risk accordingly.
Update: all trades closed for profit or b/e. See below:
Long USD/CAD: closed for b/e
Long EUR/AUD: closed for 31 pips
Long GBP/AUD: closed for 56 pips
Short NZD/USD: closed for 18 pips
Short Gold: closed for 89 pips
Total gain: 194 pips!
Another fantastic trading session using my TS system!

Wednesday 28/9/11
The EURX has broken out and up out of the descending triangle on the 4hr chart. (see charts). This could indicate more bullish up moves for the EUR. It is currently retesting this breakout level and I will wait to see if it continues up or reverses. The positive talk about the Greek bailout overnight is no doubt at work here; buoying the EUR and seeing money flow out of the USD perceived safe haven.
I think caution is needed here until a clearer picture about the overall trend is available.
Midday update:
The ADX is heading back to the water line on a majority of pairs. This is good for catching the next major trend. Patience is needed at times like these to wait for the next trade set up. The EURX and USDX are both bouncing along in a sideways pattern. No clear direction on these just at the moment.

Tuesday 27/9/11
The EURX kept me out of a short on the E/U last night. Positive talk overnight about a Greece bail out has buoyed the EUR and stocks and seen money flow out of the USD haven. This is yet another example of how technical trading is impacted upon by fundamentals (announcements etc). That is why, now more than ever, traders need to look for lots of confluence before placing trades. Last night, the EURX index did indeed bounce off the bottom trend line, as suspected, and this lifted EUR pairs.
This change in sentiment has resulted in some sideways movement with many pairs. This is good for the TS system as the ADX tends to move back to the water line and it is then much easier to determine a new trend and, thus, new trade.
I will be cautious with any LONG signals on the E/U, A/U, E/J and A/J as their upper Bollinger Band on the 4 hr charts are pointing steeply downward. This can be a strong barrier to continued movement.
Monday 26/9/11
I have signals to short the E/U and E/J. The E/U is currently sitting above the key psych level of 1.34. The EURX is also bouncing up off the bottom trend line of the symmetrical triangle. I will wait for a break and close below 1.34 before taking a short on the E/U. I'm leaving the E/J alone for the time being. It is too low for me and there is always the risk of the BOJ intervening on the Yen.

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