Aug 23 – Aug 28
How did these do?
CADJPY – Looking at a pullback and using the four hour chart for entries gave us 80 pips. We had a pop to resistance and then basing. Position in the base as an entry prior to the break.
EURUSD – Trend line break on the four hour chart leads to a 94 pip move. Great example of how a tight stop would have taken you out. Consider ATR type of stops.
NZDUSD – 180 pips to the upside. Four hour chart entry as price puts in a higher low. Placing a buy stop over the high that if broken confirms the higher low is the entry.
Another week of price movement that gave little opportunity for trades although number of trades doesn’t equal money made. 207 pips can be worth a lot or a little.
We did get a pop out of Bitcoin for a 4.5% pop.
Many traders I know buy and hold Bitcoin as there is still the expectation of higher prices. Still, you’d want to keep in mind strong moves against your longs. This week, once again, price movement has made for some challenging trading conditions.
For most traders, sitting on the sidelines is not a bad play unless you can trade lower time frames. The daily charts may be a mess, but you can often times find great trends in higher time frame consolidations…on the lower time frames.