Sunday Evening

Alright, so you guys should know by now I don’t usually take trades on Sunday, yet alone hold trades over the weekend. However, this weekend was different lol. I feel like I’ve said this a couple times, where I say “I usually don’t do this” etc. Sometimes are justifiable, and I will honestly say this one is as well. Friday afternoon, after seeing the huge drop in the pound, I knew there would be a retrace up to a nice value area where I could possibly take a reversal trade lower. I found two setups that fit my strategy to a T, so I executed. Here are the two trades I took. I’ll break them down in detail as well. I’ll let you know in advance, I closed them for +3.3% profit total. Let’s get it.

audus.png

Let’s start with AUD/USD. And yes if you’re wondering if the other pair I traded was USD/CAD, you’re correct. Yet another hedge position. So getting into the trades, after seeing the huge drop in the pound, I was waiting for a pullback like this. The fact that it was Friday afternoon about two-three hours before close made me a bit hesitant, putting myself at risk for a gap if I held over the weekend. The setup was too good to pass up. As you can see on the 1H chart above, price came crashing down Thursday night. Found support down around 0.73000 and began its retrace. Friday morning now, I knew exactly what to look for as I have traded this setup once before. A retrace to the 0.618 Fib level was exactly what I was waiting for. Price came right up to this point which also happened to be resistance. I ended up going short at 0.75019 as price failed at the fib level. The price was definitely losing steam as it climbed higher, I knew this setup was prime.   To confirm my prediction of the chart, I went over to the USD/CAD chart to see what was shaping up over there. Although I did hold this trade over the weekend, exposing myself to a gap on Sunday afternoon, it worked out quite well. I manually closed the trade 0.74186. Taking a look at USD/CAD it was nearly the complete opposite of the chart above.Lrye3s93

Price had exploded higher when the EU referendum was happening, the pound was weakening, the dollar was getting stronger. Yet again, I knew a pullback was going to happen sooner or later. Price pulled back down to the 0.5 fib level with a nice rejection. I was too late to get in at that price (1.2900). I then watched it pull up and reject the 0.382 level quite well. This was when I was cooking something up on AUD/USD. When I spotted this I had a good feeling I had chosen the right directions. My long position was executed at 1.29403 and I manually closed it at 1.30389. All in total nearly 180 pips over two trades. One thing I didn’t mention is the trade sizes were half of what I normally have been trading. The volatility and the fact that I would most likely hold these positions over the weekend made me size them down. I normally don’t like exposing myself to gap over the weekend, but in this case it worked out quite nicely for me. Although things turned out this way, I could’ve easily been short USD/CAD and long AUD/USD and come face to face with a gap. This blog post would be a lot different lol.

Wrapping it up, all in all happy with how these two trades worked out. I haven’t entered these into my journal yet but from what I last remember writing about this should bring me up to +7-8% for the month of June. Very satisfied with this. For now, I’ll be waiting for the market to shape up and choose a direction.

Happy Trading!

Disclaimer: This is not investment advice. These are trades I have taken and by the time you read this will have already come and gone. These are not signals and this is not a signal service. Trade at your own risk!

Published by MyFX Blog