The trend was up until 8am EST. From 4am – 8am EST a new trend change candle formed and change the trend from up to DOWN. After 8am EST, the trend remained down the rest of the day.
Today I only looked for long trades until 8am EST. After 8am EST, I only looked for short trades.
News events to watch for today :
- 4:30am EST– UK Trade Balance
- 7:00am EST- UK BOE Interest rate announcement
- 8:30am EST- US Trade Balance ; Initial Claims
1:15am EST– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD went from negative to positive. This was a valid entry.
The entry was at the close of the candle at 1.5465 with a stop at the most recent swing low at 1.5440. Since I was 35 pips away from the nearest 50 or 00 level, I decided to put my target at 1.5500.
Entry: Long at 1.5465 Stop: 1.5440 Target: 1.5500
2:00am EST- Unfortunately I was stopped out of my trade. (-25 pips)
6:45am EST- There was almost a signal here but MACD didn’t meet our criteria. Also because it was before a news candle I would not have entered even if it was a valid signal.
Trade Result: -25 Pips (NOT INCLUDING SPREAD) R-Multiple: -1.00
News events to watch for Friday: