Just an observation but it seems to me that the best moves for my style of trading are now setting up after 1330 hrs.
I’m not saying that we don’t get some decent moves between 0600 hrs to 1000 hrs because we do. However the real runners, the sweeter setups are occuring in the New York session. (Great for all you guys who like a lie in!)
It seems like the markets are running a 400 metre relay and passing the baton between the trading zones. At the moment New York has the baton it seems. At the beginning of the year it was the Asian session that had the baton. You’ll notice when Asia has the baton, the move (if it’s going to happen) will occur by around 0330 hrs and it will run real smooth, with no dramas. How many times did London wake up in February and find that the daily range had already been taken by Asia????? LOTS
Yesterday morning my attention was on the GBP crosses. The best moves for the early morning trade were the EUR crosses thanks to the German CPI figures at 0700 but I didn’t notice them setting up Doh!.
My trade from the early morning session was on GBPJPY short. I love taking trades after a retrace and there was a lovely bearish bar after a retrace at 0740 hrs. Entry was the break of the bar to the downside. The stop should be at the high of the bar plus the spread BUT GBPJPY can really move so I have an emergency stop for this pair which has to be at least 20 pips away from entry. As usual scale out at +20 and you can see we had a nice run down to the big fig @ 134 with a pin head rejection bar reversing the move.
QUICK TIP: If you use Metatrader have the ASK line on your chart as well as the BID (you can do this by selecting PROPERTIES when you right click on the chart & its on the 2nd tab) It will help you to see where your entry price is for your long trade and also when your stop or take profit is going to get hit on your short trade.
The afternoon trade was much better technically, again an entry on a retrace. No news was due to interupt the flow apart from the crude oil inventories after 1500hrs
Target was the big number (maybe optimistic bearing in mind the daily range having already been done) but the rejection bar was the signal for me to lock em in and move my stop which got taken out on the next bar at 131.70. That’s the way it goes, but it was a good entry with good trade managment. So I’m pleased with that one.
Let’s see who has the baton today.