October 17, 2008
Weekly Trading Update - October 13-17
It was a strange week this week with all three of the major pairs I trade (the GBP/USD, EUR/USD and USD/JPY) crossing downwards (in terms of the EMAs I use) at roughly the same time on Wednesday. All three were in daily down trends (according to the daily Supertrend) so I was only looking for short positions.
As it turned out I only actually traded one of these positions - the USD/JPY. The EMAs looked like they were decisively crossing downwards on the 4 hour chart so I reverted to the 2 hour chart to get a good entry at 100.83. I had been patiently waiting for this crossover all day so I decided to give it plenty of time to unwind.
The price dropped nicely and actually fell below the psychological 100 barrier but after bouncing back above I decided to close the entire position at 100.04 just to be safe as I felt it might climb back towards my initial entry point. As it turned out it did actually continue to fall below 100 to about 99.30 but it was still an excellent profit and well worth the wait.
As it turned out the GBP/USD and EUR/USD followed the same pattern and would also have yielded some nice profits but in trying to get the best entry possible I missed out completely as the price didn't retrace enough for me to get in.
But overall it was still a very profitable week even though it was quite uneventful.