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, the trend remained DOWN the rest of the day.
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 Retail Sales
- 7:00am EST– UK BOE MPC Base Rate
- 8:30am EST– US PPI
- 9:15am EST– US Industrial Production
- 10:00am EST– US Business Inventories
6:45am EST– Didn’t consider this possible signal because it was right before the 7:00am EST news.
7:15am 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 1.3216 with a stop at the most recent swing high at 1.3249. Since I was 16 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.3200.
Entry: Short at 1.3216 Stop: 1.3249 Target: 1.3200
7:30am EST– My target was hit. Price mad a clean break so I moved my stop to 1.3200 and set my next target for 1.3150.
7:45am EST– Unfortunately I was stopped out at my original target at 1.3200. (+16 pips)
Trade Result: +16 pips R-Multiple: 0.48