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 Retail Sales
- 7:00am EST– BOE MPC Base Rate
- 8:30am EST– US CPI
- 10:00am EST– US NAHB Builders Survey
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 1.4188 with a stop at the most recent swing low at 1.4181. Since I was 12 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.4200.
Entry: Long at 1.4188 Stop: 1.4181 Target: 1.4200
12:30am EST– Unfortunately I was stopped out of my trade. (-7 pips)
5:45am EST– There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid entry.
The entry was at the close of the candle at 1.4157 with a stop at the most recent swing high at 1.4203. Since I was only 7 pips away from the nearest 50 or 00 level, I decided to go for the same amount of pips I was risking on the trade, which in this case was 46. This put my initial target at
Entry: Short at 1.4157 Stop: 1.4203 Target: 1.4111
6:45am EST– My target wasn’t hit by this time. Since news was coming out at 7am EST, I decided to manually exit my trade. I got out at 1.4121 (+36 pips)
Trade Result: -7 +36= +29 pips R-Multiple: -1.00; 0.78
News events to watch for Friday:
- 8:30am EST– US Building Permits
For a complete list of news events check out our Forex Economic Calendar.
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