August 28, 2009
Weekly Trading Update - 24-28 August 2009
Well it's been another frustrating week with a lot of sideways trading action but the summer months are coming to an end now so hopefully things will pick up in the next few months. There were just two trades this week using my main 4 hour trading strategy. They were both winners but I don't think I'll be ordering the yacht just yet.
The trades in question were on the GBP/USD and USD/JPY pairs. Both of these were in bearish trends on the daily chart (according to the Supertrend indicator) so I was only looking for shorting opportunities on the 4 hour charts.
The first trade occurred on Monday afternoon when the EMAs crossed decisively downwards on the GBP/USD pair. I went short at 1.6432 and ended up holding on to it overnight. My initial target price of 50 points was achieved the following morning and after closing out half the position I let the other half run, moving my stop loss down to break-even.
I had to go out on Tuesday afternoon so I set my target price at 1.6230 because I really believed a 200 point profit was easily achievable on this latest downwards move. However I was incredibly frustrated to come back and find that it had taken out my stop loss at break-even. Worst still the price did then go on to fall to this level (and indeed all the way to 1.6154). So it's fair to say that I was not amused.
The USD/JPY trade occurred on Tuesday morning after the EMAs crossed downwards. I went short at 94.27 but wasn't particularly confident about this one. Because I was going out I set both my stop loss and my target price at 40 points. Thankfully it did reach this target in the end but I was very close to being stopped out on two separate occasions.
So overall a steady but unspectacular week. By the way just like last week there has been an upwards EMA crossover on the EUR/USD pair but the decisive crossover candle was again too long for my liking.
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