Monday 26/4/10 – A quiet morning…for me at least.

It was a quiet morning for me today.  I was not as sharp as normal and so scaled back my trading.  Just the one trade which turned out to be a scratch position for me.

GBPUSD.

1. Cable has set up for a bullish breakout and so my order is placed and triggered at 1.5444.  There is sterling strength across the board, which I’ve determined from my Relative Strength Filter.

2. Price hammers north and on my brokers platform gets to within 1 point of my B/E point before faltering.  It’s not unusual but I’m watching like a hawk for any sign of weakness.

3.  I see a reversal set-up and feel that this upthrust is over.  When price heads back to my entry point I step aside at break-even for a scratch trade.  Price continues down and today it would have hit my stop loss for a full loss had I not stepped aside.  Interestingly later on price bounces back north and would have hit final target.  As mentioned before I don’t re-enter on these mechanical early morning system trades but if you had you’d be chuffed to bits.

So a dull start for me on a day when there were a few cheeky pips to be had. I’m cool with it as I know from the  analysis of my trading records that Monday isn’t a great day for my trading (it only ranks 3rd out of favourable days).

What I did pick up on were a couple of great set-ups on other currencies and they will be going into my set-up powerpoint slide show which I use to train my eye to see specific set-ups I like.

Trade well,

FXTrader Paul