Sunday, May 13, 2007
Sleepy Trader, A look at the Technicals
The first thing i do before i trade is a take a look at currency correlation. What ever the USD/CHF and USD/JPY are doing should be the inverse of the EUR/USD and GBP/USD. Currency correlation looked alright so i started to plan my trade. My layout for a chart is as follows:
200(EMA), 55(EMA), 21(EMA),5(EMA),8(EMA)
MACD(12,26,9)
Slow Stochastics(14,3)
First i measured the 261.8% fib extension of the news candle, 8:30(NYT). I knew that i would enter my trade at the break of the 200EMA on the 15 min and shoot for that 261.8% extension. I had some things to do later in the day and didn't want to leave my trade open so i exited a little early when i was up about 10 pips on the euro and the gbp. Hah the three arrows right around my entry point was when i got trigger happy, entered my trade and exited it a couple seconds later...whoops :-o Ended the day up about 28 pips on the GBP/USD and EUR/USD :-) we'll see what the next trade brings.
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