Best Setup For The Week | 2011-03-28
After giving you a lowdown on what moved the comdolls for the past couple of days, I now give you my BEST COMDOLL SETUP OF THE WEEK!
This week I decided to give the award to AUD/USD because it popped up not one, not two, but THREE buy signals early in the week that could’ve gotten me a good number of pips.
On the one-hour chart I spotted a nice bullish divergence forming near the pair’s psychological 1.0100 handle. What’s more, I looked at Stochastic and saw that it was hollering an oversold signal. Lastly, I drew my horizontal lines and I found out that price was retesting the top weekly ATR!
If I had only bought at the WATR, put a 50-pip stop right below the psychological 1.0050 level, and aimed for 1.0290 (10 pips below the major 1.0300 handle), I would’ve gotten a 4.2:1 reward-to-risk ratio on the trade.
Another setup I could’ve taken was a simple long trade at the week’s open price. After all, I have been trading this pair for quite some time now, and I have observed that its price action tends to move in one direction each week. I could’ve bet a few pips that it was going up and gone long at .9960. If I had used a 65/1/1 stop-trail-add strategy on it instead of teaching my kid neighbor how to Dougie, I would’ve had a trade that is still open with at least a 5:1 reward-to-risk ratio, 5 positions, and a total of 695 pips in the bag already! I sure hope that kiddo can do a fancy dougie when I next see him!
All right, that’s it for my Comdoll Weekly Replay this week! Now that I’m having an easier time reviewing how the comdolls moved and spotting good chart setups, I hope that I’ll be able to translate it to profits next week! Got any ideas how I can do that? Give me a shoutout in the box below or on my Twitter account!
What Moved The Comdolls This Week? | 2011-03-25
What a week for the comdolls, huh? Gold and oil were rockin’ near their yearly highs again as risk appetite returned in full swing. I don’t know about you, but it seems that traders already shrugged off the nuclear situation in Japan and the conflict in the Middle East. If only I could move on from a heartache that fast!
Well, the comdolls deserve a toast – French toast and bacon! Mmm…
While I’m happy for New Zealand, I’m bummed out about my NZD/USD short trade this week. You see, I even took a raincheck on a night out with my girls just to be able to watch my trade during the actual GDP release. I guess it was good that I decided to do so because I was able to close my trade early and limit my losses when it came out better than expected. I was trying to think positive for my account’s sake and, when I hit the refresh button on my browser to see the GDP results, they were in fact positive. Grrr!
As for the comdolls, NZD/USD and AUD/USD pretty much moved in one direction the entire week while USD/CAD struggled a bit because of its weak retail sales report. Apparently, core spending remained flat at the start of the year while the headline retail sales figure slipped by 0.3%. As my new trader friend told me, poor spending and high inflationary pressures is a nasty combination because it could lead to stagflation. Canada might want to keep an eye out for that later on.
But that’s still far ahead… What you should watch out for is my BEST TRADE SETUP for the past week! While I was reviewing the charts this lazy afternoon, I spotted a ridiculously awesome 10:1 trade that I could’ve taken! I’ll be posting it soon so make sure you check it out if you wanna catch the same setup in the future.
Got any ideas on which comdoll pair won as my BEST TRADE SETUP of the week? Hit me up on the comment box below! You could also tweet me your favorite breakfast combination on my Twitter account. Toodles!