04 Nov This Week’s Swing Trading Round Up; 4th November 2012
From a swing trading perspective I did absolutely nothing this Week!
Almost everything I’m watching traded within a range and it’s becoming increasingly difficult to gauge the direction any breaks from those ranges will be.
The watch list remains the same as that described in last Weekend’s update though maybe I’ve missed potentially good entries on EUR:GBP which remains on the radar, as does AUD:CAD and CAD:JPY
The only development over the last Week is an apparent development of weakness across Euro pairs, extending to some extent to Swiss Franc Pairs so my focus will be on these over the next few days.
As for Stock Indices, Friday’s price action would imply a resumption of the down trend, but Cobra points out some interesting facts:
When Spy forms a bearish engulfing at the 5 day high, buy the close and sell on the next days close for 100% statistical chance of a profit.
18 occurrences in the last 2000 trading days, and in every case the following day closed higher.
Of those 18 occurrences of a bearish engulfing at a 5 day high, only 2 of them marked a top, the rest all went on to eventually make higher highs.
My system is short on DOW, but didn’t switch short on FTSE.
Only time can tell where the next great trade will be!