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 stayed 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:
- 4:30am EST– UK GDP
- 8:30am EST– US Durable Goods
- 9:00am EST– US FHFA House Price Index
- 10:00am EST– US New Home Sales
12:45am 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 1.3129 with a stop at the most recent swing high at 1.3138. Since I was 29 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.3100.
Entry: Short at 1.3129 Stop: 1.3138 Target: 1.3100
4:15am EST– My target wasn’t hit by this time. Since news was coming out at 4:30am EST, I decided to manually exit my trade. I got out at 1.3119. (+10 pips)
10:30am EST– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD was negative and gaining value. This was a valid entry.
The entry was at the close of the candle at 1.3248 with a stop at the most recent swing low at 1.3223. Since I was only 2 pips away from the nearest 50 or 00 level (1.3250), I decided to go for the same amount of pips I was risking on the trade, which in this case was 25. This put my initial target at 1.3273.
Entry: Long at 1.3248 Stop: 1.3223 Target: 1.3273
11:45am EST– My target wasn’t hit by this time. Since 12 noon EST was approaching, I decided to manually exit my trade. I got out at 1.3258 (+10 pips)
Trade Result: +10 +10= +20 pips R-Multiple: 1.11; 0.40
News events to watch for Thursday:
- 6:00am EST– UK CBI Distributive Trades Survey
- 8:30am EST– US Unemployment Claims
- 10:00am EST– US Pending Home Sales
- 10:30am EST– US Fed Kashkari Speaks