The trend was down until 4am EST. From midnight to 4am EST a new trend change candle formed and changed the trend from down to UP. After 4am EST the trend remained up the rest of the day.
Today I only looked for short trades until 4am EST. After 4am EST, I only looked for long trades.
News events to watch for today :
- 6:00am EST– UK CBI Distributive Trades
7:15am EST– There was a moving average crossover for a long trade. RSI was greater than 50, MACD was negative and gaining value but stochastics were trending down. This cancelled out the signal and I did not enter.
10:15am EST– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD was negative and gaining value. This was valid entry.
The entry was at the close of the candle at 1.6042 with a stop at the most recent swing low at 1.6009. Since I was only 8 pips away from the nearest 50 or 00 level (1.6050), I decided to go for the same amount of pips I was risking in the trade, which in this case was 33. This put my initial target at 1.6075.
Entry: Long at 1.6042 Stop: 1.6009 Target: 1.6075
3:30am EST– Unfortunately I got stopped out of my trade. (-26 pips)
11:45am EST– My target was still not hit by this time. Since noon EST was approaching I decided to go ahead and exit my trade. I closed out at breakeven.
Trade Result: +0 pips R-Multiple: N/A
News events to watch for Thursday:
- 2:00am EST– UK Nationwide House Prices
- 8:30am EST– US Initial Claims
- 9:45am EST– US Chicago PMI
- 10:00am EST– US Factory Orders