Best Comdoll Setup of the Week: 2011-05-23
Lovely Monday morning, friends! Since I’m in a good mood from my early morning jog, I decided to take a look at NZD/USD, a pair that I don’t normally consider for my best comdoll setup of the week. And surprise, surprise! I spotted a setup that could’ve given me 500 pips! It’s not an easy setup to spot though. Did anyone else see this one?
In my fundamental comdoll replay yesterday I talked about how the Kiwi remained strong even when its other comdoll buddies were taking hits against the Greenback. Well, that certainly showed on its 1-hour chart last week!
NZD/USD dillydallied just above the weekly average true range (ATR) early in the week, but it soon worked its way up when positive data started popping up from New Zealand. If only I had seen the bullish divergence that had formed with the price’s lower lows and Stochastic‘s higher lows, I probably would’ve gone long at Monday’s support!
If I had gone long at .7780 and used a 45-pip stop-trail-add (STA) strategy, I would’ve been in the trade until the pair reached .7970, which is just above the top weekly ATR. My trade idea would’ve had 5 positions by then, and I would’ve been stopped out with a 5:1 reward-to-risk trade. But if I had closed all my positions right at the top weekly ATR, my risk ratio would’ve improved to 11.11:1! How awesome is that?!
Whew! All these missed pips is making me hungry! Maybe I’ll prepare something hearty for breakfast. I’ll be back though, especially if you have questions for me, like what’s an STA strategy, what the heck is WATR, and yes, you can even ask me what I had for breakfast!
Till next time!
What Moved the Comdolls Last Week: 2011-05-22
Confused, much? The comdolls were as indecisive as Rebecca Black when it comes to picking which seat to take last week. In the comdolls’ case, they played eenie-meenie with risk sentiment as they moved sideways for the most part.
The Aussie was off to a good start when it got a strong boost from the hawkish RBA monetary policy meeting minutes. Although the central bank didn’t hike interest rates in their most recent policy decision, the minutes of their meeting revealed that policymakers still had high hopes for the Australian economy.
The Kiwi was lucky enough to get a push from stronger than expected inflation data, when its PPI reports beat estimates. For the first quarter of the year, producer input prices reportedly rose by 2.2% while output prices jumped by 1.7%, their fastest pace of increase since 2008. Do I sense a rate hike on the horizon? Why, yes I do!
The Loonie didn’t fare as well as its mates as it got clobbered before the end of the week when Canada printed weak data. Canadian CPI fell short of expectations while consumer spending stalled in March. That was enough to make the Loonie erase its gains and end lower against the Greenback for the week.
That’s all I got for now! I’m off to enjoy a movie date with my girlfriends in a few. Gotta bounce!