It's been quite a good week this week. The stock markets have drifted slightly higher, which is good because I hold a number of large cap stocks, and I squeezed a profit out of my main 4 hour trading system (see right for more details). There were no breakout trades this week, but I did manage to find a decent pin bar reversal on the FTSE (see my last blog post for more details), which yielded a decent profit as well.

So let me talk you through the trades that were produced by my 4 hour system. There were three in total, with two of those coming good and one resulting in a loss.

The losing trade was on the GBP/USD pair on Tuesday morning. The trend was down according to the Supertrend indicator on the daily chart, so I was looking to go short on the 4 hour chart, and did so when the EMAs crossed downwards. I went short at 1.6020 but this never looked like coming good and I was stopped out for a loss of 40 points.

The next trade on this pair was more successful. The EMAs crossed downwards once again and I went short at 1.6029 this time on Wednesday morning. I then closed half the position for 50 points and let the other half run, moving my stop loss down to break-even. I was targeting 1.5900 but I was still holding this position this morning, so I finally decided to close out at 1.5956.

The most successful trade was on the EUR/USD pair. I had been waiting ages for the EMAs to cross downwards on the 4 hour chart and they finally did so on Tuesday. I went short at 1.4471 and managed to close half the position for 50 points and the other half for 121 points at 1.4350, which was slightly fortunate as I was only about 4 points away from being closed out at break-even at one point with this latter position.

So overall it was a profitable week on the whole. I am now finished for the week although I may just be tempted to open a short on the FTSE or the Dow if there is a (bearish) pin bar on the 4 hour chart before the day is out.

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