October 14, 2011
Weekly Trading Update - 10-14 October 2011
There was just the one trade this week, and that was based on my early morning breakout system. My 4 hour trading system (see right for more details) didn't throw up any opportunities, but we are in a transitional phase at the moment with the daily Supertrend indicator turning positive (or about to turn positive) on the FTSE and some of the major currency pairs.
Anyway with regards to my one breakout trade, it was on the GBP/USD pair as always. The overnight range on the GBP/USD pair was generally too wide on most days, but yesterday it was just 38 points. So I waited for the price to break out of this range after 8.00 (UK time), and it did so (breaking downwards) just after 9.00.
I then went short at 1.5723, with my initial price target being the pivot point. This was only around 11 points lower, so I closed half the position at this level, moved my stop loss down to break-even and targeted 1.5700 for the second half of the trade. Thankfully this second target was hit and it was a reasonable profit overall.
So although the forex profits were quite small this week, I cannot really complain because the stock markets have continued to strengthen, and therefore the value of my long term share portfolio has risen nicely.