"Take Risks: If you win, you will be happy; if you lose, you will be wise. Nothing ventured, nothing gained."

Wednesday, January 20, 2010

20 Jan, Aud/Usd - Swift Night

Its been a day of Dollar Rally, from 1H and 15M chart are all downtrend, forming a neat Perfect Order. Short after a few confirmation of the following:

Session: New York, London Crossover.
Duration: 1 hour.
Timeframe: 15M.
Technical: Hidden Bearish Divergence, Moving Averages.
Fundamental: Bullish USD news release on Building Permits & PPI m/m. USD rallying against major on Daily, except Yen.
Strategy: Candle closes below 20 SMA, hidden bearish divergence formed, bad forecasted PPI m/m, unchanged forecast on Building Permits, no violent reaction upon announcement. Downtrend.

Basically an extract from my personal trade journal. well, maybe only i myself can understand what im writing. Juz for reference sake anyway.

Some bull exhaustion on the above. Blue lines indicating divergence - Lower High, Higher High. Candles neatly closes below 20SMA line. Again, put my first position, in a bad position, entered the second position at a much nicer price, difference of about 8 pips.

my position were most of the time positive throughout the hour, so i thought to myself, why do i always let my losses run and for once, let my profit run please! i hang it there, for quite a bit. until i realise the bearish momentum has indeed dying off at previous support.

Indeed, the next two bull candle confirming my decision to close both my positions.. where stochastic is pointing up and candle closes after 20 sma.. as of now though. night ended with +22 pips.


Forex FX-Trader said...

Some may predict that the forex market for this year will show some improvement eventhough some nation are still in deep crisis. The indication that FED will raise rates will have a positive on US dollar value.

Black said...

it definitely will, but FED may not want to do that yet.

nice site bro.

Grinder Trader said...

But they keep printing money...

Black said...

that is probably why countries holding the dollar as reserves are having headache at the currency value.

although i think a weak dollar boost u.s. exports.

nice to meet you GT :)

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