June 24, 2011

Weekly Trading Update - 20-24 June 2011

The ongoing Greece crisis continues to weigh heavily on the markets, but thankfully it's been another profitable week this week. My main 4 hour trading strategy (see right for more details) generated two winning trades out of three, and I managed to find two winning trades using my early morning breakout strategy as well.

Let's start with the 4 hour strategy first of all. I traded one position on the GBP/USD and two on the EUR/USD pair. I opened the GBP/USD position on Monday when the EMAs crossed upwards on the 4 hour chart. I was only looking to go long at this point as the Supertrend indicator was still green on the daily chart (although it has since turned red, indicating a bearish trend), and I entered a position at 1.6204.

I actually entered a little prematurely as I took a position before the crossover was confirmed, but I got away with it as I managed to close half the position for 50 points just after midnight. I then moved my stop loss up to break-even and set my target price 50 points higher, but the price eventually retraced the following day and I was taken out at this new stop loss level.

Regarding the two trades on the EUR/USD, I placed the first trade on Monday morning when the EMAs crossed downwards on the 4 hour chart. This looked like a certain winner, but much to my surprise I was actually taken out with a 40 point loss.

Nevertheless after a brief rally that lasted from Monday to Wednesday, the doom-mongering resumed and I managed to trade the next downward crossover at 1.4309 on Thursday morning.

This trade was a lot more successful and after managing to close half the position for 50 points, the second half of the position was closed out for 136 points. I was targeting 150 points but because the trading range for that day was so big, I thought I would bank the profit just in case there was a reversal.

On to my breakout strategy now and I placed two trades on the GBP/USD pair. The first was on Tuesday morning and was a straight forward enough trade. The overnight trading range was relatively small and there was a nice downward breakout at 9.30. I went short at 1.6203 and traded it down to the pivot point for a profit of just under 20 points.

The following trade occurred yesterday and there was another long period of consolidation from 12.00 until just after 9.00, when the price broke downwards out of this range. I went short at 1.6016, and after an initial retracement, I managed to close out the position for 30 points profit after the price fell to the S1 level.

So overall it was a very profitable week. My shares have been up and down this week (mainly down!!), but thanks to today's rally they're not doing too badly at all. As long as they don't fall sharply yet again during the rest of the day, I shall go into the weekend relatively happy.

(If you would like to find out more about my 4 hour trading strategy, simply fill in the form above).



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