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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2 Comments on Weekly Trading Update - 11-15 July 2011 »

July 16, 2011

mike @ 12:00 am:

Thank you for sharing your 4-hour method.
Question: You mention that you would consider a 2-hour chart
to secure a tighter entry into the 4-hour chart?
Would you also consider an even smaller time frame, such as the 30-minute or even a 5-minute time frame to pinpoint an
entry into the 4-hour chart?
For example: Let's say that we anticipate an imminent entry
into a 4-chart. At that given point in time, could we not
attempt to pinpoint the actual entry into the 4-hour chart
by simply cross-ferencing that moment with the 5-minute
chart and thus enter the 4-hour chart in a more timely manner by entering it through the referenced entry signal in the 5-minute chart? I'm sure you see what mean here, as the objective is to secure the most timely entry point
into the 4-hour chart. Thereby eliminating the ambiguities
of entering the higher time frame 4-hour chart as a standalone.
Thank you for your anticipated response and goodwill.

James Woolley @ 2:11 pm:

Someone suggested this approach before, but to be honest I just prefer to keep it simple these days. Once the 4 hour crossover candle has closed I am just waiting for a slight pullback of say 10-20 points to get a good value entry point.

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