MACD Tag

As you'll remember in my previous post of 2 Weeks ago I gave details of 5 currency pairs each demonstrating early stages of set-ups I tend to follow before entering a trade. As things stand I've not entered trades in any of them as yet. For one of them I missed the chance as the move began overnight therefore making the risk/reward ratio a little less favourable, one I forgot about, one didn't play out as expected, one still hasn't finished the set-up and one is very close to decision making time.

As you can probably tell based on the mid-Week updates to the blog, my focus this Week was on day trading the volatility across Indices and this delivered some quite profitable trades. Although EUR:USD remained top of the watch list for a swing trade on the long side, I found it quite difficult to find a comfortable entry and in the event EUR:USD rallied quite hard albeit through some sudden bursts each of which lasting no more than a few hours. This made the potential swing quite difficult to catch and therefore the trade was missed. EUR:USD now lies bang on resistance so it will remain on the watch-list to see how it copes and from there I can make a decision as to whether I'll trade it, and whether it will be on the long or short side.

Throughout this Week I've stood by the notion that Indices may be near to forming a top ahead of a decent correction. Although that's speculation I remain committed to monitoring charts ahead of the trading possibility that will follow. The USD:CHF swing long remains intact but more interesting than the trade itself is the fact that the USD remained strong in general against some of the large one day rallies we've seen across Indices - another potential market topping sign.

Probably posting this potential swing set up a little on the early side, but it demonstrates how far out I begin to plan a potential trading set up and allows me to follow and understand the way a particular Index or Forex Pair is moving before taking an entry. If this plays out and offers a trade, it will be the

Waiting for quality Swing Trade entries is like waiting for a bus.... After a long wait for anything remotely swing-able, 5 trades all turn up at once! It's certainly been a busy Week for both swing trading and day trading, but it's time I really took action to cut out the day trading for all but the highest levels of volatility because although it can potentially be more profitable, it generally under-performs over the longer term and is much more