Saturday, May 27, 2006

Pivot point trades and EURUSD Trend and upcoming pennant

More nice trades to finish off the week. Noticed an upward trend was forming (possibly) After confirmation of the fall from resistance, I wait for the second candlestick to confirm direction - then enter a sell order.

The currency does fall as anticipated, and I wait for the expected reversal at support. This doesn't happen however and our trade drops right through support ..... and carries on going. I let it ride, as I have a 15 pip TSL in place and it eventually gets triggered, closing us out for a profit of 33 pips - excellent!

If you have a look at the image below, you will see at close on friday, the currency is beginning to trade in a narrowing range. This is forming a pennant, which should eventually be breached. I think possibly up. But I am going to place a buy and sell stop above and below to catch the movement Sundays open. Keep your eye's on it!

Good old pivot points. Never let us down! This trade was really a no-brainer as the GBPUSD was trading off the Pivot and support almost to the pip. Made two trades (second one shown here) You can see the pair briefly touching the main pivot before re-tracing to the blue support, each time the bearish candlestick signalling our entry.

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