Bad Assed Trader: Those who read my earlier blogs of 3 July and 6 July might have wondered what did happen to the EUR GBP pair in the end so here's how the down move played out:
I've shown the full move which ended on 18th July with a low test bar (the second to last green bar with the long tail) which indicates a move back up is coming and it has gone back up ever since.
I only traded the beginning stages of that move as it was against the underlying up trend. I took it as far as the 20 day moving average (the blue line) and made 3%.
This morning I've checked the charts and most currency pairs have already moved quite a bit during the Asian markets so I'm waiting to see if any "snapbacks" might come up. These are very short term trades where I trade on a 15 minute time frame and look for over extensions in a ranging pair which I can then trade back to the average.
I look for snapbacks when most pairs have already moved a lot as they often then chop about which is frustrating if you're looking for a longer move. Better to go with the flow and adopt a choppy strategy I think.
More again soon...
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| EUR GBP at July 19 2011 |
I only traded the beginning stages of that move as it was against the underlying up trend. I took it as far as the 20 day moving average (the blue line) and made 3%.
This morning I've checked the charts and most currency pairs have already moved quite a bit during the Asian markets so I'm waiting to see if any "snapbacks" might come up. These are very short term trades where I trade on a 15 minute time frame and look for over extensions in a ranging pair which I can then trade back to the average.
I look for snapbacks when most pairs have already moved a lot as they often then chop about which is frustrating if you're looking for a longer move. Better to go with the flow and adopt a choppy strategy I think.
More again soon...
It'll be interesting to see what happens after today's GDP announcement. If it's as bad as analysts predict it's going to be, then a retracement of sorts is in order. But then again, you should never trade on news!
ReplyDeleteHi Nelly, as you say - never trade the news - it never ends up as expected! We were all expecting news to be crap for the pound and then the GDP figures ended up being as predicted which sent sterling up against the US dollar and Euro (the markets apparently showing surprise that the predictions were right for once). So we had another high test day on EURGBP yesterday and a big drop today with the pound holding its own against JPY and CHF. What a weird world this is.
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