Wow an interesting morning to say the least, lets start at 6.10am. I entered a short trade on cable and scalped 5 pips. Got out early due to the news at 7.00 from Halifax on property. The Forex Market has been erratic the last 2 days for us online traders.
Pound Dollar has been channeling for days on the strategy we use on the hour. This can then affect even the breakouts if it continues too long. I suffered a double loss in one day about two weeks ago, I believe for the same reason. When the Forex Markets are channeling in anticipation of news it can be a major headache.
(Fig1)
On my entry for the first long trade I'm not sure why I actually entered. In hindsight it was in the middle of no mans land. I was discussing entry points with trading partners Neville and Adrian and they had decided on 16930 for the long trade. Basically I went with them even though I did not see a clear entry!
My fault really and soon as I entered the trade it retracted. The red candle ate the green and was followed by a second red, this took me out on stop loss at 16905.8. Very annoyed, but good thing Neville and Adrian had wider stop loss. I gave myself 30 on risk reward.... I think Nev had 45 and Adrian below 900 level. When I finally re-entered they were close to break even!
With 30 pips to gain back I set my limits for 60. I had the feeling it had broken the resistance of 16930. I rode my luck through 16950 which was the final major resistance in my opinion. I closed out with just over 40 pips 2 Min's before the 9.30 announcement.
35 pips up for the week with with two days to go, the pound continues to rise against the dollar. This makes my forex trades very interesting. Non farm news and MPC news on the first Thursday of each month will continue to make this an entertaining week.
Safe Trading!
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