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:
4:15am 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 1.3207 with a stop at the most recent swing high at 1.3224. Since I was only 7 pips away from the nearest 50 or 00 level (1.3200), 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 1.3190.
Entry: Short at 1.3207 Stop: 1.3224 Target: 1.3190
5:15am EST– My target was hit. Price did not make a clean break so I took my final profit. I got out at 1.3192 (+15 pips)
Trade Result: +15 pips R-Multiple: 0.88
News events to watch for Friday:
- 4:50am EST– BOE Vlieghe Speaks
- 8:30am EST– US Retail Sales
- 9:15am EST– US Industrial Production
- 10:00am EST– US UoM Consumer Sentiment