The last couple of weeks have been relatively quiet trading wise. Compared to the first 3 months of shorting GBP and YEN the last few weeks have been positively dull. Have people knocked off for summer early (I wish) or just taking a break after a manic first quarter?
Either way my trade frequency has been low but I took a long trade on GBPAUD yesterday which surprised me in its move. The GBPAUD is in a STAM 2 Buying environment (learn more about that here) so I was merely waiting to see if I had a trade set-up. Yesterday mornings 4 hour chart provided me with an entry and I placed a long order with a tight stop-loss.
The trade triggered and moved north – in an OK manner – what did concern me was the inability to close above the 21 MA and the bearish tails on the first couple of candles. Once the candles turned red later on in the day I expected the trade to fail. I left the trade to play out over night but expected at best the trade would just whimper along because of the May Day public holidays or my tight stop-loss would mean I was stopped out. thats ok – I’m alright with being wrong. It happens plenty of time.
Anyway I was surprised to check in this morning to find the trade a) alive and b) in profit Furthermore when I checked in later in the day the trade had almost reached my target! I was dealing with a 10 pip spread on GBPAUD (yep – ouch) so wondered if that would be my downfall i.e. hot my target but not be taken out due to the spread.
Well I needn’t have worried. It would appear that people have been selling the Aussie today and that carried me over the finish line just after 1pm today. In fact as I look now it appears to have gone another 60 pips past my target. That’s of no real implication for me as my trade worked out for +96pips / +4R / +2% gain.
Maybe this is the start of a good long summer? I wont hold my breath.