The trend was UP until 4am EST. From midnight to 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 Manufacturing Production
- 8:30am EST– US Trade Balance
- 10:00am EST– US IBD Consumer Optimism
12:15am 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 1.5593 with a stop at the most recent swing low at 1.5583. Since I was only 7 pips away from the nearest 50 or 00 level (1.5600), I decided to go for the same amount of pips I was risking on the trade, which in this case was 10. This put my initial target at 1.5603.
Entry: Long at 1.5593 Stop: 1.5583 Target: 1.5603
1:45am EST– My target was hit. Price didn’t make a clean break so I took my final profit. I got out at 1.5603. (+10 pips)
Trade Result: +10 pips R-Multiple: 1.00
News events to watch for Wednesday: