This is yet another Week where I have to begin by apologising for the lack of updates!
In last Weekends review I suggested the likelihood for retraces in Yen pairs, and they did retrace. I suggested Euro pairs may pull back from resistance, and they did. I also proposed the possibility of a pull back across Indices, predominantly in the form of a high volume single day flush, and we had that too, albeit not in the 2% region as I'd hoped.
For day trading its been a great Week, but somewhat quieter for swing trading. The majority of FX pairs I've been watching ended the Week pretty much where they started having just chopped about within ranges. A few pairs made larger moves but those moves were not really obvious before hand and some of them were from ongoing longer term trends that didn't offer the ideal buying/selling supports/resistances that I tend to look for.
It was my intention this Week to spend a fair amount of time studying and analysing the Markets in order to plan a good few swing trades. Unfortunately that never happened and with the failure of my main PC, I actually went 2 days without even looking at the Markets, instead, spring cleaning the House whilst waiting for a new PC to arrive!
Although I missed some great day trade setups on Indices, the USD:CHF long sat in the background accruing a fair few pips and only now have I had a chance to take a closer look at the chart.
No new swing trades were taken this Week as not a single set-up on my watch list created conditions that fitted with my pre-planned analysis.
Quite amusing was the USD:CHFset-up I'd been watching that not only ignored potential support areas I'd identified for a possible swing long, but literally crashed through them as if they didn't exist!
Only the one swing trade taken this Week, and exited 24 hours later.
That was the EUR:USD long, the analysis behind which can be found in this post.
It rallied almost straight away after entering and 24 hours later price was rejected from quite strong resistance at the top of the recent range, which happened to coincide with the triangle I'd marked out in the previous analysis.
Just a brief update this Week and unfortunately no charts due to internet connection problems corrupting uploads to the site.
Again I spent most of this Week day trading but observed that it's been more difficult to maintain the gains of the previous 2 Weeks mainly because we've not had any volatility in Indices as they've been trending, but trending slowly! I didn't want to participate in longs beyond DOW 13,600 due to overbought conditions whilst neither was there any reason to go short.
Not finding anything particularly easy to read at the moment, so treat the following post as me thinking aloud!
The 2 Indices I trade most are DOW and FTSE, so I'll start with my thoughts on those.
First of all to make clear, I have no idea where they are going, struggling a bit to be honest, so the following is based on my system.
Lots of swing trading opportunities, but sadly, other than a bad one, I didn't get to take any of them.
Of the stocks I'd mentioned last Week, most gapped up on Monday's open and rallied from the outset soon leaving them in overbought conditions on smaller time frames thus removeing the appeal of entering at safe levels. I'll continue to watch them but as a couple could be extended rallies within longer term down trends it's difficult to commit long fearing they may reverse any moment.