When the next candle hit my 30-pip filter, I eagerly jumped in a long EUR/USD trade… only to get stopped out a couple of days later when my 150-pip stop loss was reached. EUR/USD just can’t seem to get over the 1.3500 handle, just like I still can’t move on from the Zanessa breakup!
I did get another valid signal later on during the week, this time to go short. The EMAs crossed down while the stochastic was dropping but, unfortunately, my 30-pip filter wasn’t hit by the next candle. No, wait, I take it back. FORTUNATELY, the next candle didn’t hit the 30-pip filter because that saved me from getting burned again! Nice save!
In any case, this week was wild, wild, WILD!! First, we started the week off with a nice run of appetite, with the euro and pound rising across the charts. Then, before I could say, “Oh wow, Ryan Reynolds is single again?!”, the two currencies got chopped up last Wednesday!
It seems that the markets are still iffy about the European debt crisis. Every time bad news pops up, traders just sell the euro! Still, it seems like EUR/USD just can’t break that 1.3200 handle. Hmmm… I wonder whether this will hold over the next couple of weeks, especially with liquidity dying down.
Meanwhile, the FOMC announcement turned out to be a major dud. I guess everything important was already said in the past, which is why the markets didn’t react too much to this week’s statement.
With liquidity dying down, I’m going to put any trading on hold and focus on reviewing the results of my discretionary trading and mechanical system. Next week, I’m going to give you guys an in-depth review of how both systems fared this year, complete with stats and personal thoughts. Stay tuned for that!