The trend was UP until 4am EST. From 12am – 4am EST, a new trend change candle formed and changed the trend from up to DOWN. After 4am EST, the trend remained DOWN the rest of the day.
Today I only looked for long trades until 4am EST. After 4am EST, I only looked for short trades.
News events to watch for today :
- 4:30am EST– UK BBA Mortgage Approvals
- 9:00am EST– US FHFA House Price Index; S&P Case-Shiller Home Price
- 10:00am EST- US Consumer Confidence
2:00am 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 1.6033 with a stop at the most recent swing low at 1.6021. Since I was 17 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6050.
Entry: Long at 1.6033 Stop: 1.6021 Target: 1.6050
4:00am EST – Unfortunately I was stopped out of my trade. (-12 pips)
Trade Result: -12 pips R-Multiple: -1.00