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My trading for the week is over except for my [Chicago PMI-tec] “test” which members of my ezine know about… (see http://www.fasttrackforex.com) or sign up on the right of this blog.
I want to explain to you why I went long in cable this morning and how I made my 10 pips. Actually I made 13 pips from this trade. Now, some of you will have found this trade from the information on this blog and might have reached higher targets than 10 pips or 13 pips. Congratulations on that.
Firstly, I was tempted to take a short based on the seemingly bearish engulfing candle on the four hourly chart. But no! The candle had not closed and there was 50 minutes action remaining.
Not only that, but on my chart I have an important fibonacci line (signally the top of a move at 2.0020 level or so. This has start a bout of sidways trading around the level 2.000 to 2.0050.
I missed the short this morning whereby we had a breakout of the sideways long, but there was very little steam in the bullish second candle with the long shadow. I probably would not have taken that short anyway because it seems to me to have been ambiguous, although I did read somewhere that this kind of break so early in the morning can result in a reversal back to the rangebound area…
Looking to some of the commentaries I receive by email then and elsewhere ( see my partners directory http://www.sambeatson.com/lnk ) I see that their are all talking of bullish sentiment on GBP/USD and targets of reaching the recent all-time highs in the end.
Technically I was waiting for a “triangle” break. Now you cannot always do this. I will enclose a picture on this post. But sine the support at 2.005 seems pretty strong, a breakout of this triangle on the 15 minute chart led me in to a long trade with target of 10 pips. I manually removed my take profit and took profit on the second time the market hit 13 pips in profit.
I deliberately did not stay in the trade (even though there has been another 10 points profit potential so far at least, if not 20) because I believed the market would be pretty slow today due to the announcements later on and it being a Friday. Well, I don’t especially care a jot. Fully ahead of my 10 pips per day plan this week, I’m going to celebrate tonight with a date with my wife and daughters.
Happy Pip Making…
PS. don’t forget my Chicago PMI test. I will be testing it LIVE this month using a proportion of my profits this week only.
If you want to learn how I trade one to one, and take all of my courses with just one simple, rock bottom price payment, visit http://www.fasttrackforex.com/members and we’ll take it from there. Thanks for reading and please DIGG THIS POST to help make this blog receive more readers…
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[…] What could happen is a triangle forms (see an earlier post for an example - http://www.sambeatson.com/?p=45 ) and then we will get a break out from that with the pivotal (central) part of the triangle at around 2.0173. […]
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