I missed the early entries on EUR and Cable and decided to not chase it and see what develops. At 14:00 a channel break setup occurred which I decided against. I figured that both currencies had moved most if not all of the daily range at that point and I didn’t want to risk going further. As it happens Cable and Eur did drop further – oh well. That doesn’t happen every day ! Ok it wasn’t a profitable call but I am pleased with myself that I resisted the temptation to chase the market. On the flip side my friends at http://fxtraderpaul.wordpress.com had a good day on cable, read Cobba’s good day; and he had time to keep fit today – well done mate!
I was taking a look a new Momentum Trading Strategy today that was developed by Kathy Lien. I placed 2 trades (paper) using this strategy and it seemed to work out OK. What I was looking for was a strategy that was a little more definite than the two I was using, and eliminated a little more subjectivity from my setups to date. It gives far fewer setups during the trading session, but I am hoping more consistency. Anyway, another tool in the kit box. As someone wise once said “if you only have a hammer in your toolbox then every problem will be a nail”
The momentum strategy focuses on the price cross over of the 100period sma and the 20 period ema with a MACD check point. Relatively simple to follow and developed for 5 min charts.
An example of the trade is below.
Have a great weekend