November 27, 2009

Weekly Trading Update - 23-27 November 2009

Well I'm kicking myself for not staying with the GBP/JPY breakout trade. You may recall that I highlighted a possible breakout last week and when it did break downwards I banked around 100 points. However this breakout has continued into this week and it's since fallen another 800 points, so I really missed out on some huge gains on this occasion. However the one trading position I opened this week turned out pretty well.

It was on the GBP/USD pair and I went short yesterday afternoon (when all my American friends were enjoying yet another day off, Happy Thanksgiving by the way  ) after the EMAs finally crossed downwards on the 4 hour chart.

I actually traded against the trend on this occasion, but I've been bearish on this pair for a few weeks now and just felt that it was due a retracement, particularly as there was a nice bearish divergence pattern on several indicators such as the MACD, Smoothed Repulse and TRIX indicators.

After the EMAs crossed downwards on the 4 hour chart, I waited for a slight pull-back and went short at 1.6560. As I normally do, I closed half the position for 50 points and let the other half run, moving my stop loss down to break-even.

I set my target at 1.6400 and let it run overnight, and despite thinking that this may be a little ambitious, the price easily reached this target, helped by the bleak news from Dubai, and the effect this may have on British banks who have exposure in this part of the world.

So overall it was a solid profit and a decent enough week. It could have been even better if I could have managed to open a short on the EUR/USD pair as well, but unfortunately the crossover occurred overnight so I couldn't trade it. My next target is the EUR/GBP pair (providing the Supertrend indicator doesn't turn bullish on the daily chart) but I don't think this is likely to break downwards until next week now.

So that probably brings an end to my trading this week. I hope you all have a great weekend.

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2 Comments on Weekly Trading Update - 23-27 November 2009 »

December 9, 2009

mike @ 2:44 am:

James,

You could enter a 4 hour chart in a more timely manner
simply by using the 5 minute chart and not risk losing
a valuable amount of pips.

Why don't you do this?

Mike

December 29, 2009

Mike @ 3:05 am:

Dear James,

I've read some of your commentary and fully understand your reluctance in using 5-minute charts, and I fully agree
with your position.

However, there is but one pair that works in the 5-minute
arena, the Pound-Yen, where the typical moves at certain
time pivots can measure up to 75 pips or more. And not just
at the UK or USA open sessions.

The Pound/Yen alone has this qualification. The Euro/Dollar
and all the rest are disaster areas for 5-minute considerations. I would certainly like to know what your
trading experiences are with regard to the Pound/Yen wherein the volatility allows wider swings and therefore
more breathing space.

Kindest Regards,
Mike

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