The trend was down until 8am EST. From 4am – 8am EST a new trend change candle formed and changed the trend from down to UP. After 8am EST the trend remained up the rest of the day.
Today I only looked for short trades until 8am EST. After 8am EST I only looked for long trades.
News events to watch for today :
- 10:00am EST- US IBD Consumer Optimism
7:15am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down but MACD was already negative from the previous candle. This cancelled out the signal and I did not enter.
8:15am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD was negative and gaining value. This was valid entry.
The entry was at the close of the candle at 1.6438 with a stop at the most recent swing low at 1.6408. Since I was 12 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.6450.
Entry: Long at 1.6438 Stop: 1.6408 Target: 1.6450
9:45am EST- Unfortunately my target wasn’t hit by this time. Since news was coming out at 10am EST I decided to manually exit my trade. I closed out at 1.6447. (+9 pips)
Trade Result: +9 pips R-Multiple: 0.30
News events to watch for Wednesday: