29 OCTOBER 2009 – ANOTHER STUPENDOUS DAY with 280.4 PIPS IN THE BAG

Firstly – apologies for not blogging much this week. For those of you with children you’ll know that this is half term week so I have been putting my trading in where I can, whilst we enjoy this ‘Indian Summer’.

Added to which my internet connection has been ssso slow it feels like at times I’m back using the old dial up connection OH MY GOSH can you remember those days.???!!! Well anyway I am paying for a 10meg service even though my ISP can only provide max 3 meg down the line and the speed (?) I have been receiving is usually around HALF A MEG!!!!!!!! As my other half says ‘’this is narrow band NOT broadband.’’

Anyway enough of my ranting and raving. For a week of sporadic trading full of mishaps and mayhem it has been surprisingly smooth for me personally trading wise. Trades are jumping out at me at the moment rather than me having to hunt them down. Which is great.

The stars of the day for me have been the EURAUD (which is usually a nice little mover and netted me over 100 pips today) and USDCAD for the setups.

I love the USDCAD one the most so I’ll talk you through that one.

USDCAD

First view at the hourly chart this morning showed some lovely divergence on the MACD – really beautiful

Showing that the new highs really had no power behind it. HOWEVER there was no entry short yet.

Then at lunch time came the US GDP figures which was just the shove that USDCAD needed to drop it over the edge of the cliff. My entry did not come from the initial reaction to the news.

Dropping timeframe to the 15 minute chart, I waited for a low to be formed and the retracement. Once the price started to try to pull higher I had the low I was waiting for and could take the fib measurement for the potential entry. The 50% retracement coincided with one of my EMAs (2 reasons to think it will hold) and I was short as soon as priced bumped the EMA with a target of the 161.8% extension

A really easy set up and a simple trade, exactly the way it should be.

Lessons from the trade:

1. Wait for the retracement for your entry – there is no need to try and jump on board a moving train.

2. Go down a time frame if needed to find your entry

3. The MACD says the move is running out of steam is not enough reason to enter a trade

4. Running the fibs into the rest of the move would have given some lovely places to add to the position.