The trend was down until 7am EST. From 3am – 7am EST, a new trend change candle formed and changed the trend from down to UP. After 7am EST, the trend remained up the rest of the day.
Today I only looked for short trades until 7am EST. After 7am EST, I only looked for long trades.
News events to watch for today :
- 2:00am EST- UK Nationwide House Prices
- 4:30am EST- UK CIPS Manufacturing PMI
- 10:00am EST- US ISM Manufacturing ; Construction Spending
1:30am EST- There was a valid signal here but because it was right before the 2am EST news I did not enter.
6:30am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD went from positive to negative. This was a valid entry.
The entry was at the close of the candle at 1.5592 with a stop at the most recent swing high at 1.5647. Since I was 42 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5550.
Entry: Short at 1.5592 Stop: 1.5647 Target: 1.5550
9:45am EST- Unfortunately my target wasn’t hit by this time. Since news was coming out at 10:00am EST I decided to close out my trade. I exited at 1.5582.
Trade Result: +10 pips R-Multiple: 0.18
News events to watch for Wednesday:
- 4:30am EST- UK CIPS Construction PMI
- 8:30am EST- US Initial Claims
- 10:00am EST- US Pending Home Sales