The trend was UP until 7am EST. From 3am – 7am EST, a new trend change candle formed and changed the trend from up to DOWN. After 7am EST, the trend remained down the rest of the day.
Today I only looked for long trades until 7am EST. After 7am EST, I only looked for short trades.
News events to watch for today :
- 6:00am EST– UK CBI Distributive Trades
- 8:30am EST– US Initial Claims
- 10:00am EST– US Pending Home Sales
12:45am 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 1.5146 with a stop at the most recent swing low at 1.5129. Since I was only 4 pips awy from the nearest 50 or 00 level (1.5150), I decided to go for the same amount of pips I was risking on the trade, which in this case was 17. This put my initial target at 1.5163.
Entry: Long at 1.5146 Stop: 1.5129 Target: 1.5163
2:15am EST– My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5160. (+14 pips)
5:00am EST– No entry here because it was right before a news event.
9:45am EST– No entry here because it was right before a news event.
Trade Result: +14 pips R-Multiple: 0.82
News events to watch for Friday:
- 4:30am EST– UK BOE Mortgage Approvals
- 8:30am EST– US GDP
- 9:45am EST– US Chicago PMI
- 10:00am EST– US Univ. Of Mich. Sentiment