Having day traded the short term range in GBP:USD throughout much of last Week, this morning I entered a long, initially planned as a day trade but after further thought decided to give it some breathing space, albeit with one eye regularly checking up on it.
The main trend is clearly down and has been for some Months but a time has come where practically every time frame is showing almost extreme levels of positive MACD divergence. This in itself is no guarantee of a reversal, but should lead to a correction of some kind, and even a weak correction is still adequate to take 100 pips or more.
Although my concentration lies with swing trading, there are times when a great trading set-up makes day trading worthwhile so here's a quick synopsis of a trade I took earlier today.
On the Daily timeframe my system has remained short on the FTSE 100 since May 2013, although the Hourly time frame has switched between short and long on a few occasions. However, today's trade was based on the simplest form of T.A but keeping in mind that I find FTSE a quirky index that has its own characteristics.
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.
Following on from previous EUR USD analysis posted on this site over the last few Weeks, I've finally decided that I've spent too long waiting and missing desired entries!
The first ideal entry was 1.3000 and I missed that when it rallied 200 points within the couple of hours I was away from the screen.