The trend was UP until 7am EST. From 3am – 7am EST, a new trend change candle formed and changed the trend from up to DOWN. After 7am EST, the trend remained down the rest of the day.
Today I only looked for long trades until 7am EST. After 7am EST, I only looked for short trades.
News events to watch for today:
- 6:00am EST– US NFIB Small Business Optimism Index
6:45am EST– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up but MACD was already positive from the previous candle. This cancelled out my signal and I did not enter.
7:00am EST– Started looking for short trades.
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 1.3526 with a stop at the most recent swing high at 1.3541. Since I was 26 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.3500.
Entry: Short at 1.3526 Stop: 1.3541 Target: 1.3500
11:45am EST– Unfortunately my target wasn’t hit by this time. Since it was approaching 12 noon EST, I decided to manually exit my trade. I got out at 1.3513. (+13 pips)
Trade Result: +13 pips R-Multiple: 0.86