The trend was DOWN until 7am EST. From 3am – 7am EST, a new trend change candle formed and changed the trend from down to UP. After 7am EST, the trend remained up the rest of the day.
Today I only looked for short trades until 7am EST. After 7am EST, I only looked for long trades.
News events to watch for today :
- 4:30am EST– UK Trade Balance; Manufacturing Production; Industrial Production
- 7:00am EST– UK BOE Base Rate
- 8:30am EST– US Initial Claims
- 10:00am EST– UK NIESR GDP Est.
2:45am 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 signal. I entered at the close of the candle at 1.5662 with a stop at the most recent swing high at 1.5673. Since I was 12 pips away from the nearest 50 or 00 level, I put my initial target at 1.5650.
Entry: Short at 1.5662; Stop: 1.5673; Target: 1.5650
3:00m EST- Unfortunately I was stopped out of my trade. (-11 pips).
4:15am EST- There was a valid signal here but because it was right before the 4:30am EST news event I did not enter.
Trade Result: -11 pips R-Multiple: -1.00