April 27, 2008

Weekly Trading Update - April 21-25

It was another good week this week on the forex markets, but unfortunately all my profits were wiped out by a long in London Stock Exchange being stopped out, although I won't go into details about that here as this is a forex site after all.

Most of my trades have been documented and discussed in my two previous posts this week.

I dabbled in a bit of short-term trading on Tuesday and Wednesday trading the 5 minute charts of the EUR/USD between 8.00 and 9.00 UK time. On both these occasions there were high probability positions to be taken where all of my indicators were lined up and in conjunction with each other, and both yielded decent profits.

Thursday looked like another good short-term trading opportunity but despite going long at around 7.50 and being 20 points in profit for a while, I was stopped out on this one at just below breakeven. Serves me right for being greedy. I should have closed at least half the position for +20.

Trading my favoured 4 hour charts, I traded what appeared to be a perfect breakout on the USD/JPY when the EMA (5) and the EMA (20) converged and consolidated nicely before eventually the daily upwards trend prevailed and there was a nice breakout upwards.

Regarding the GBP/USD, my favourite currency pair, I was looking for short positions (as the daily trend was still downwards as indicated by the Supertrend) and instances of the EMA (5) crossing down through the EMA (20) on the 4 hour chart. However despite this happening on two occasions this week, both times the price dropped too much too soon, and there were no quick pullbacks and therefore it was not possible to great a decent entry so no positions were taken.

But overall it was a good week trading the forex markets. Just a pity these profits were cancelled out by a loss on one of the UK shares I trade.

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