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Main Trend
Current Trend= Trend remained up until after the 7:00 am ET candle. Trend changed from up to DOWN after 11:00 am ET.
I only looked for long trades until 11:00 am ET. After 11:00 am ET, I only looked for short trades.
Today’s Surf
9:45 pm ET– There was a moving average crossover for a long trade. RSI>50, Stochastics were trending up, but MACD was positive. This was a false signal. No entry!
5:30 am ET– There was a moving average crossover for a long trade. RSI>50, Stochastics were trending up, and MACD was negative and gaining value. This was a valid entry. Entry was at the close of the candle which was at 9688 with a stop at the most recent swing low which was at 9657. Since the entry was after midnight there was a good chance for some movement. The dilemma however, was that I was only 12 pips away from the nearest 00 level (9700). So in this case, I decided to go for the same amount of pips that I was risking which was 31 pips. This put my target at 9719.
6:45 am ET– My target is not yet hit. At 7:00 am ET I knew that the BOE was going to announce their interest rate decision and part of my rules is to exit before important news events. I decide to take what little profit I have at 9700.
7:00 am ET– BOE Interest Rate Statement! Good thing I exited!
11:00 am ET– Trend change candle was complete. Now I only looked for short trades.
Trade Result: +12 pips; R-Multiple= 0.38