This is my first blog for ages as I’ve been busy moving home and it’s been the school holidays, but now all that is done and I’m back blogging on FOMC Tuesday with a video!
I didn’t think there would be much to do today, overnight in Asia was quiet with everyone waiting for this evening’s meeting, to see if the rumours are true and BoJ are about to jump in again and whether SNB are going to doing anything about the value of the Franc. So I was very happy to see a nice bit of MACD divergence on cable 5, 15 and 1 hour charts and confirmation on the 4 hour chart all setting up for a nice shorting opportunity down to 1.5500.
2 trades off cable today the first was the range break with MACD divergence and the second was the rejection of the figure entering short again after price had retraced to the 61.8% fib and my favourite moving averages.
Check out the video it’s great to get your feedback.
FXTraderPauls Trading Adventures 
September 21, 2010 at 3:49 pm
Sandy, Good to hear you’re back…..the video is only 40secs though ????? Seems it cut off early Jim
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September 21, 2010 at 4:27 pm
Hey Jimmy, in my eagerness to get this on the web I dumped it in too early.
Were your ears burning last week? I was asking Paulie about you.
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September 21, 2010 at 5:38 pm
Hi Sandy, I hope your are OK. Excellent trades, wish I had taken them. Videos are really informative and helpful. Thanks for getting me on this journey by attending TU in Nov 2008! Rob
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September 21, 2010 at 6:44 pm
Hey nice work FXTrader Sandy! Some great trading there.
There was a lot of clicking noises in the back ground though……was that your dentures? 😉
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September 21, 2010 at 8:20 pm
Hi Sandy, great trade and a great video…. thanks it was very informative and helpful for someone like myself who is getting back into trading having been away from it for a year or so. You probably wont remember me as I worked at TU as a coach for just 1 month, in Sept 2008, but I remember you…Paul will remember me as we sat in the womb together for those eventful 4 weeks. keep on blogging. Roger
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September 22, 2010 at 8:36 pm
Hey Roger, I do indeed remember you from our time together in the ‘womb’. In fact I’m still in therapy from that time!
Nice to see you here,
Paul
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September 22, 2010 at 11:04 am
Hi Sandy,
Thanks for sharing. The trade execution explantion is very clear with a narration using video…..
By the way, just one question, do you just use only MACD to sniff the market condition ?
for this case?
Thank u..
Seok
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September 23, 2010 at 10:37 pm
Hi Seok,
Thank you for stopping by.
I use the MACD to help me to understand what the price action is saying.
Sometimes it can confuse the issue (especially if all the timeframes are saying something different).
But at other times they can give me a better understanding of the most likely direction that a break out may occur if there has been a long period of consolidation. Plus of course there is the classic divergence.
Sandy
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September 23, 2010 at 1:35 am
Interesting explaination. I always find MACD a little delayed to take such an entry. Well done, I guess luck was on your side this time.
Obulwe
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September 23, 2010 at 10:29 pm
Hi Obulwe,
I would love to say that I’m a lucky person – but I’m not. Whenever I leave something to ‘chance’ lady luck does not smile on me.
MACD divergence when used correctly can give a warning that all is not as it seems with the basic price action. When used with other signs it can give you a heads up to an opportunity to trade, a warning to get out or a reason to leave a trade alone.
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