Good Evening / Morning Dynamic Traders
"Better to have tried and failed, than not tried at all"
Cross = EURUSD : Day chart below.
Hello everyone, I hope you all had a great week in the markets, it was not the best week as far as trend trading goes but not getting stopped out has its advantages, in the long run. Those of you that read and digested Tuesday's blog, I want to share with you a text book repeat of what we discussed in length. It happened on Wednesday on the DAY chart of the EUR.
I have been watching the EUR since the beginning of January due to what I read in the "Commodity Trader's Almanac 2010" Seasonal traders will know that the EUR usually heads down during the month of January, providing shorting opportunities until early mid February.
As you know the market is always right and it looked as if this common trend had happened in December, some 30 days earlier. Added to this that price was now finding comfort with the support of the VI. Early signals were that a bounce up looked the more likely, and the shorting trade was not an option, leaving the trade not at the top of my watchlist.
On the 19th January we had a BOB on the VI, remembering Tuesdays blog and not getting too anxious to place the trade, the trap was set for that 1,2,3 movement. Price did provide a big movement down the next day, when a smaller bar would have been preferred, however patience was needed not to pull the trigger and wait.
The 22nd and 23rd provided us with upward movement back towards the VI and on the 26th price moved DOWN towards the trap. We had confirmation on the MACD and BINGO the movement on the 27th triggered the trap and the trade was entered.
It has currently given us 150 pips of profit. CHING CHING
On Thursday night we had Jordan Belfort the "Wolf of Wall Street" in Birmingham UK, giving a 2hour talk. It was an interesting 2 hours listening to the mans story, I will tell you more next week.
Please remember to do your own analysis before entering any trade.
Trade with Passion
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