December 12, 2008

Weekly Trading Update - December 8-12

Well it was a very busy week this week with 3 trades being triggered in total, shared between the GBP/USD and USD/JPY pairs. Both of these pairs are in established downward trends on the daily charts so I was looking for short positions on the 4 hour charts.

The first trade occurred on Tuesday morning when my favoured EMAs looked like crossing downwards on the 4 hour chart. I screened down to the 2 hour chart and got what I thought was a good entry point at 1.4795. It went against me initially but it soon resumed it's downwards move and I managed to close half for just under 50 points and the other half at 1.4711 after it failed to move substantially below 1.4700.

The next occurred on Wednesday also on the GBP/USD. The first crossover failed to gain much momentum so I was confident that this one would see a strong downwards move. Unfortunately it didn't happen and after going short on Wednesday evening at 1.4790 I was forced to close later that evening at 1.4841 for a loss of just over 50 points when the EMAs starting rising on the 2 hour chart. Ideally I should have closed this position a bit earlier but I tried to give it every chance to turn down again.

The final trading position of the week thankfully compensated for this losing position. It was on the USD/JPY and occurred yesterday morning when the EMAs broke decisively downwards. I entered a short at 92.11 and later closed half this position for +40 and half for +75 after it failed to reach my 100 point target.

There was another downwards crossover on this pair but it happened in the early hours of Tuesday morning, ie when I was asleep, so I couldn't trade this position.

Overall though it was a decent enough week. Not one of my best ones by any means but I still came out ahead, which is the main thing.

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