I woke up as ever at 6am when my Google home read the news highlights to me. Turn my TV on with the remote and up come my charts. I’d missed a nice 70 pip drop in GBP/AUD, but it was overnight so no big deal. The first thing I saw on screen was our predicted maximum level of support coming in flat and strong. That meant I should be expecting a bounce, possibly a long one. So I waited.
With the Eastern USA suffering from a “bomb cyclone” today and 1100 flights cancelled plus warnings to stay at home, I figured it was a good day to avoid trading USD anywhere and so I decided to look at GBP/AUD only, then finish trading at 3pm if there was nothgn happening.
0645 – we come close to hitting the “institutional” support (dark grey).
0800 – we trade right down to the institutional support and then we trigger the buying.
0815 – we get the entry signal and buy 1/2 position at 1.7232
0830 – we get the add to the position signal, and buy another 1/2 at 1.7239
Now we just run the stop, and we simply wait. I had a feeling that I should take the position off when the break from the daytrader cloud was rejected, but as it backfired yesterday to override the math ….. I didn’t. The result? I was stopped at 1.7264 gave back 16 pips at a full position ($400). BUT I still ended this trade nicely up.
$10 x (1.7264 – 1.7232) = $320 PLUS $10 x (1.7264 – 1.7239) = $250.
So the first trade of the day was $570 by 1030 and in 90 minutes.
Right. Nicely done by 1030 I went to Waitrose for some food and a coffee at Starbucks before reading a book (about Bletchley park as it happens). I check the screen every 15 minutes or so to see what happens. Kind of boring. But effective trading is often boring.
Anyway, cut a long story short…… lovely little short develops after a couple of hours.
$10 short at 1.7280, stopped at 1.7233. Never added to the position as none of my rules was met. 47 pip profit @ $10/pip = $470. Total for the day $570 + $470 = $1040.
Good luck NYC. A “bomb cyclone” cannot be much fun. With luck it clears shortly.