Monday, October 10, 2011

Trading Week 10/10/11

Saturday 15/10/11
Some new trends kicked in overnight. I would take these signals now if the market wasn't about to close for the w/e. The USDX and EURX are both very close to the 200 EMA on the daily charts. This strong S/R level could cause some pause in the pairs so this is another reason to wait until next week to take any new trades. Gold and silver are still drifting sideways.

The signals received over Friday night were:
Long: E/U, E/J, A/U, A/J, G/J, G/U and NZD/USD

Friday 14/10/11
Most of the pairs just drifted sideways over the last 24 hrs. The E/U and E/J had some volatility in their moves though. If you look at charts of the EUR and USD indices though you see spinning top candle formations for the last daily candle on both. (charts posted below) This is a sign of indecision in the market place and explains the sideways drift in the pairs. Gold is also just nosing along into the apex of the symmetrical triangle formation.

Update on signals from Wed night:
I had posted earlier in this thread that the following signals triggered on Wed night:
Long E/U, E/J, A/U, A/J, G/J and NZD/USD.
Short: G/A, USD/CAD and E/A.

Of these, all except for the USD/CAD moved to give at least 100 pips. The USD/CAD isn't called the 'loonie' for nothing though! This is another fantastic performance for the TradeSpotting system. I look forward to trading this system next week.

Thursday 13/10/11: Afternoon update
I'm looking over the signals that triggered from last night. I thought I'd post a chart of how one of the trades appeared when it signaled. I've selected the AUD/USD trade. The 4 hr chart is a bit squashy so I've moved down to the 1 hr chart to post for illustration purposes. I've labelled the chart showing where I would have got in and where I could have got out with my first parcel, although I usually set a 100 pip profit target for the first parcel and let the second parcel run. Entry and exit would have been after the candle close with the line through it. This trade would have yielded 170 pips to date, more than a week worth of pips! Another fantastic result for my TradeSpotting system. I missed these trades last night as I was out for the day and evening with visitors. It's great to know that my system keeps on working though!

Thursday 13/10/11
I have woken this morning to see that there were some TS signals that triggered overnight. These trades are continuing in the trend direction from last week though. Positive Euro talk last night (Sydney time) helped to continue these moves. A quick look at the indices confirms that the trend direction from last week is still intact. That is, long on EUR and short on USD. (see daily charts). The daily 200 EMA is looming ahead for both of these indices so, some caution is required. This may offer some resistance to the continued move. I'm not going to chase these trades by jumping in late. I will keep track of them though to confirm the merits of the TradeSpotting trend trading system.

The signals that triggered last night:
Long E/U, E/J, A/U, A/J, G/J and NZD/USD.
Short: G/A, USD/CAD and E/A.

Wednesday 12/10/11

Most of the FX pairs are bouncing around in a sideways pattern in narrow ranges. A good time not to trade. This will be good for the ADX though as it will give it time to trend back to the 20 water line level. This is of great benefit to the TS system as it enables me to better determine the next trend signals on the pairs. The EURX has broken up above the 4hr 200 EMA. This is helping to hold up EUR pairs at the moment. USDX still holding above its 4hr 200 EMA though. Very messy at the moment.

Gold Update
I posted about Gold earlier this week. The triangle set up is still looming a
nd price is getting very close to the apex. I did adjust my trend lines a bit to accommodate price action for this week. Still worth keeping an eye on I think!

Tuesday 11/10/11
No new TS signals at the moment. Some of the trends that TS identified last week are still running. I exited these trades for profit. It is worth noting the current status on these trends:

Long A/U: now up 350 pips
Long A/J: now up 300 pips.
Short USD/CAD: now up 150 pips
Short GBP/AUD: now up 300+ pips

So, in hindsight, I should have left my second parcel on the above trades stay open. I have previously stated that I am still grappling with trade management. This is a clear example of my need to deal with this.

The USDX and EURX are currently stalling at the 200 EMAs on their 4 hr charts. These areas are also the monthly pivot points. We will need to see if the current trends continue or reverse at these key S/R levels.

The ADX on many pairs is way above the water line so it may take a few sessions for new trade set ups to occur. This is where you need patience and discipline. I have made a ton of pips over recent weeks so I shouldn't be too greedy in trying to find more.

I have visitors here this week so will not be trading that much. I will take a set up if I see it and will record trades here on the blog.

Monday 10/10/11
No TS signals at the moment. Also, it is a public holiday in Canada, USA and Japan so the markets will be a bit thin. I will not be looking for trades until Tuesday. Get in the habit of checking your trading calendar at the start of each week before entering any trades!

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