July 15, 2011
Weekly Trading Update - 11-15 July 2011
It's been a perfect week this week with three winning trades out of three. My 4 hour trading system (see right for more details) found one decent trade on the GBP/USD pair, and I also found two good breakout trades on this pair as well.
Let's start with the 4 hour trade first of all. I was looking to go short on this pair because the Supertrend indicator was red on the daily chart, and I managed to do so when the EMAs crossed downwards on the 4 hour chart on Monday morning.
After a slight pull-back I opened a position at 1.5985 and ended up closing half the position for 50 points, and the other half for a further 50 points. I was very cautious here and should have held on for a bit longer but not to worry.
It looks as if we are going to get a downward EMA crossover on the EUR/USD pair as well once this current 4 hour candle closes in a few hours time, but I won't be trading this one as I always try and avoid opening new 4 hour positions on Fridays.
Elsewhere there were two profitable breakout trades, as I've already mentioned.
On Wednesday the overnight range for the GBP/USD was around 46 points so when the price broke upwards out of this range immediately after the London market opened, I went long at 1.5958. The R1 level was a natural exit point and thankfully the price hit this level to give me a profit of 25 points.
The second breakout trade occurred this morning. The overnight range was just 40 points so I jumped on board with a short position when the price broke downwards out of this range just after 8.00, entering a position at 1.6132. I was always looking to exit at the S1 level 35 points away, but I ended up closing half the position for 20 points and the other half at this S1 level, which it hit not long ago.
So overall it's been a really profitable week this week. My shares are not really going anywhere right now, but you can't have everything.
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