AusUS Currency Daily

This is a good example of not much to trade until the end. We start off with a standard long entry but we are soon shown weakness with the chart failing to move into the out channel. The interesting thing is we make a new high at the end with that red reversal bar closing on the mid. If it was a good reverse it would close under the mid but that would give us a bar that traveled almost from one side to the other so that is a real sign to be careful. We made a new low under the mid but a quick check of the weekly showed us we were some distance from that periods mid so the chances of a good trade are small. After that bar, we are soon shown a cross back above the mid but there is no follow on. The next interesting event is a possible long again towards the end of the slight down trend but a look at the weekly again showed us a negative bar. You should never trade in the opposite direction to a higher time frame. We have to wait for a clear signal so that means a close in the outer channel and a new high low to follow. The short then presents itself. The last bar is an up bar crossing the mid. Weekly mid is a long way off but we shall see what happens.

USDEur 10 min chart (10th May 2010)

This is an intra day chart of the EURUSD pair. We have a long entry followed by a short and both have a little hick-up along the way. Even though both moved into positive territory after entry they were soon met with a pullback. This is where your exits play their part. Ride the trend for the bigger rewards or take your money and run. Note, each pull back though largish did not follow on to be a direction change.

USDEur Weekly chart (10th May 2010)

Here we had a possible short that did not quite work out. The monthly bar was up so  there would be a ? as to the entry or not. The second entry did however go and has turned into a nice trade (monthly was down). There is one spot where we almost had a long setup but did not quite get there. Monthly was also down on those bars.

This entry was posted on Friday, May 7th, 2010 at 3:23 am and is filed under FX Trading. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.