The trend was DOWN until 8am EST. From 4am – 8am EST, a new trend change candle formed and changed the trend from down to UP. After 8am EST, the trend remained UP the rest of the day.
Today I only looked for short trades until 8am EST. After 8am EST, I only looked for long trades.
News events to watch for today:
1:00am 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 entry.
The entry was at the close of the candle at 1.3184 with a stop at the most recent swing high at 1.3202. Since I was 34 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.3150.
Entry: Short at 1.3184 Stop: 1.3202 Target: 1.3150
2:30am EST– Unfortunately I was stopped out of my trade. (-18 pips)
4:15am EST– Didn’t consider this possible signal because it was right before the 4:30am EST news.
Trade Result: -18 pips R-Multiple: -1.00
News events to watch for Wednesday:
- 4:30am EST– UK CIPS Market Services PMI
- 8:15am EST– US ADP Employment Survey
- 10:00am EST– US ISM Non Manufacturing