Weekly Swing Trading Round Up – 19th November 2011

Weekly Swing Trading Round Up – 19th November 2011

Another relatively trade-less Week has ended where quality swing trading set-ups have been limited.

In all honesty it’s possible that I’ve not been looking hard enough for them as there have been some great moves but by the time I spotted the potential they were at levels where the most favourable risk/reward entries had already past.

Last Weekend I discussed GBP:NZD and took a long position on Sunday night’s gap down, closing it the following day. Throughout the week I day traded the long side of this pair but really should have just kept that original long as it would have been showing quite a substantial gain by now.

Still holding the GBP:CAD long, but have now found myself also holding a EUR:CAD short. Which one of these trades is wrong? Could they both be right? I think the answer to that question would only be favourable if the Euro situation started to worsen rather rapidly, so, I need to get studying those charts to make a decision…maybe I’ll consider doing a “chart-off” focusing specifically on those 2 pairs.

Beyond that much of my week has been based around short terms trades on the DOW and FTSE. After a rough trading day on Wednesday I posted a full analysis on DOW  and so far that is playing out perfectly. When I reviewed Wednesdays trading day to gain an understanding as to why my normally tried and tested methods simply weren’t working, I came to the conclusion that some kind of  rotation or unwinding of a correlation was taking place because this is now the 2nd or 3rd time I’ve had such a difficult day where the following day consisted of heavy volume selling throughout the whole session.

In the meantime I’m going to attempt to get some detailed analysis posted up over the next couple of days  but due to an ongoing broadband/low bandwidth problem I’m having trouble using my charts which are taking upto 30 seconds just to flick between different time frames! Got a BT Engineer coming out on Monday to fix the issue, but in the meantime it may affect my ability to get some new posts up for the next day or 2 so please bear with me.

Have a great Weekend!

  • ematrader
    Posted at 08:30h, 21 November

    Of the GBPCAD and EURCAD trades I would say that the GBPCAD is the strongest of the two. The EURCAD appears to be stuck in a trading range in the daily, weekly and monthly times frames which is great for traders who prefer ranges but as someone who prefers trading with the trend I would personally opt to give that pair a miss for the time being.

    The GBPCAD on the other hand looks to be showing more strength with price forming an ascending wedge on the daily chart and also looking like it’s in the process of forming a bottom on the weekly chart. The monthly chart is still very much in a down trend but that doesn’t meant that price can’t run up to the 1.7000-75000 area should we get a confirmed break out of the ascending triangle. My only concern is that price may want to visit the bottom of the ascending triangle again, circa 1.5500, before pushing northwards so beware of any false breaks to the upside.

  • ematrader
    Posted at 15:19h, 21 November

    Just closed my NZDUSD short for +525 pips at 0.7475 as the original target has been met.
    I will look to re-enter this trade on confirmation of supporting price action following the next retracement.

  • RS2OOO
    Posted at 22:17h, 21 November

    I agree regarding GBP:CAD and EUR:CAD.

    I currently have positions on both, but looking to close one of them out and stick with the other – just not sure which yet.

    Well done on NZD:USD. I did follow you into that trade when the move was in progress, just jumping in on the trend for a couple of days. My entry wasn’t anything special and the exit was a bit hasty too, but still, it gave around 120 pips that I wouldn’t have had were it not for your post.

  • rhubarb
    Posted at 01:15h, 22 November

    The thing I like about a GBP:CAD long at some point is potential problems emerging from China impacting the AUD, NZD and CAD commodity type currencies.
    Everything would happen in slo-mo though.

  • RS2OOO
    Posted at 22:58h, 22 November

    It starts off in slo-mo but once euphoria kicks in it goes super sonic.

    That’s why i’m always kicking myself for closing out positions shortly after breakouts…only to see it double 3 weeks worth of banked points in a matter of days!

  • Andrew J. Gephart
    Posted at 11:59h, 28 November

    I couldnt have said it any better to be honest! keep up the awesome work. You are very talented & I only wish I could write as good as you do 🙂 …