September 18, 2009

Weekly Trading Update - 14-18 September 2009

After the very quiet summer months the forex markets are really starting to kick into action now. With some very nice price moves on most of the major pairs, every position I opened this week resulted in a profit. Even the position on the GBP/JPY that I mentioned in last week's update (which I ended up holding over the weekend) hit my target price of 150.00 on Monday morning and yielded a nice 200 point profit.

So the week got off to a flying start but apart from that trade there were four others to tell you about.

The first was on the EUR/GBP pair on Monday morning. The daily Supertrend was green, ie bullish, so I was looking for a positive EMA crossover on the 4 hour chart, which is exactly what happened. After a slight pull-back I went long at 0.8780.

The price then moved nicely upwards and I closed half the position for 40 points and let the other half run, moving my stop loss up to break-even. Unfortunately this stop loss was just about triggered the following day and caused me to miss out on the 200 point move that subsequently took place. To be fair though I probably would have closed the trade after about 100 points anyway because the EUR/GBP doesn't usually move that much.

The other trade that I opened on Monday was on the GBP/USD pair. The EMAs crossed downwards and I went short at 1.6580. I closed half the position for 50 points but sadly the second half of the position was stopped out at break-even. (Incidentally there was another downward EMA crossover on this pair soon afterwards but the crossover candle was far too long for my liking - over 200 points).

Anyway I needn't have worried because the next two trades were a lot more profitable. They both occurred on Thursday evening on the GBP/USD and GBP/JPY pairs. The daily trend was still down on both these pairs (according to the Supertrend indicator) so I was looking for downward EMA crossovers on the 4 hour chart, and as it happened they both crossed downwards at roughly the same time.

I opened a short position on the GBP/USD at 1.6450 after a pull-back, closed half the position for 50 points and let the other half run (again moving my stop loss to break-even). Leaving it to run overnight I closed this position out at 1.6300 earlier today.

With regards to the GBP/JPY pair, I placed an order to go short at exactly 150.00 after the price retraced slightly after the EMA crossover. Thankfully the price headed south and I closed half the position for 70 points and let the other half run (targeting 1.4850).

It didn't quite hit this target so the position is still open at the moment. However it's starting to look encouraging again because it's recently fallen back below 149.00. So hopefully this profit target should be taken out before the end of the day.

Anyway whatever happens it's still been a very profitable week. Let's hope it continues as I've really enjoyed these big price moves.

(If you would like to learn all about my 4 hour trading strategy you can access it for free when you sign up to my newsletter. Simply fill in the short form above).



Permalink • Print • Comment

Leave a Comment