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 Claimant Count Change
- 8:30am EST– US Retail Sales
- 10:00am EST- US Business Inventories
2:45am EST– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD went from negative to positive. This was a valid entry.
The entry was at the close of the candle at 1.3555 with a stop at the most recent swing low at 1.3538. Since I was 45 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.3600.
Entry: Long at 1.3555 Stop: 1.3538 Target: 1.3600
3:30am EST– Unfortunately I was stopped out of my trade. (-17 pips)
6:30am 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 1.3540 with a stop at the most recent swing high at 1.3559. Since I was 40 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.3500.
Entry: Short at 1.3540 Stop: 1.3559 Target: 1.3500
8:15am EST– My target wasn’t hit by this time. Since news was coming out at 8:30am EST, I decided to manually exit my trade. I got out at 1.3514. (+26 pips)
Trade Result: -17 +26= +9 pips R-Multiple: -1.00; 1.36