The trend was UP until 4am EST. From 12am – 4am EST, a new trend change candle formed and changed the trend from up to DOWN. After 4am EST, I only looked for short trades.
Today I only looked for long trades until 4am EST. After 4am EST, I only looked for short trades.
News events to watch for today:
- 4:30am EST– UK GDP
- 6:00am EST– UK CBI Distributive Trades
- 8:30am EST– US Durable Goods Orders
- 10:00am EST– US Pending Home Sales
12:30am 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 1.3136 with a stop at the most recent swing low at 1.3109. Since I was 14 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.3150.
Entry: Long at 1.3136 Stop: 1.3109 Target: 1.3150
2:45am EST– Unfortunately I was stopped out of my trade. (-27 pips)
4:30am EST– Didn’t consider this possible signal because it was on a news event.
11:00am EST– Didn’t consider this possible signal because it was close to 12 noon EST.
Trade Result: -27 pips R-Multiple: -1.00
News events to watch for Thursday:
- 8:30am EST– US Initial Claims