Back from a Brief Repose
Wednesday's trade didn't go quite as planned.
I felt good about the trade, seeing the positive momentum generated by the Cable after Tuesday. My buy limit order got triggered just past the 50.0 Fib retracement of January's high, near 1.7600. It got as high as 1.7616 before reversing on weaker than expected Industrial Production and Service PMI numbers. Hmmm... the same data that I had no idea what it was. Anyhow, my trade got stopped out in the reaction to the data.
The Cable then settled around the 38.6 Fib retracement - a position that has provided support in the past. Around 1000 EST ISM Non-manufacturing data came out stronger than expected, pushing the Cable a bit lower. It hovered around the 1.7500 level near the pivot point from Tuesday before rising above the 38.6 Fib retracement and middling out between the 38.6 Fib and 50.0 Fib. Early Thursday, price bounced off the 38.6 and made a dash for 50.0 before bumping its head on the 50.0 Fib. It fell lower to 1.7500 and has been confined between 1.7490 and 1.7530 since.
What have we learned? For one, be aware of fundamental data's presence and how it can screw up your carefully planned trades. With the possibility that the data can go for or against your trade, should even bother having an open trade when fundamental data is to be released? Should you just sit and wait until news is released, then follow the movement of price? I guess these are questions each trader individually has to answer.
We've also learned that the 38.6 Fib is support for the GBP/USD pair, while 50.0 Fib is almost ironclad resistance. When price is hanging out between the two, the opportunity to harvest pips is very good.
Big news tomorrow: US Unemployment and Non-Farm payrolls. Market expects 4.7% on unemployment and 190,000 on Non-Farm Payrolls. I'm going to try trading in the wake of news tomorrow. Data will be released at 8:30 EST, so before I happily march off to work, I'll watch CNBC, see what the numbers are, then I'll ride the wave. Stop losses and take profits will be based on the Fib numbers. Wish me luck!
After 1 trade
Score (in Pips)
Market 25, Young Pip 0
I felt good about the trade, seeing the positive momentum generated by the Cable after Tuesday. My buy limit order got triggered just past the 50.0 Fib retracement of January's high, near 1.7600. It got as high as 1.7616 before reversing on weaker than expected Industrial Production and Service PMI numbers. Hmmm... the same data that I had no idea what it was. Anyhow, my trade got stopped out in the reaction to the data.
The Cable then settled around the 38.6 Fib retracement - a position that has provided support in the past. Around 1000 EST ISM Non-manufacturing data came out stronger than expected, pushing the Cable a bit lower. It hovered around the 1.7500 level near the pivot point from Tuesday before rising above the 38.6 Fib retracement and middling out between the 38.6 Fib and 50.0 Fib. Early Thursday, price bounced off the 38.6 and made a dash for 50.0 before bumping its head on the 50.0 Fib. It fell lower to 1.7500 and has been confined between 1.7490 and 1.7530 since.
What have we learned? For one, be aware of fundamental data's presence and how it can screw up your carefully planned trades. With the possibility that the data can go for or against your trade, should even bother having an open trade when fundamental data is to be released? Should you just sit and wait until news is released, then follow the movement of price? I guess these are questions each trader individually has to answer.
We've also learned that the 38.6 Fib is support for the GBP/USD pair, while 50.0 Fib is almost ironclad resistance. When price is hanging out between the two, the opportunity to harvest pips is very good.
Big news tomorrow: US Unemployment and Non-Farm payrolls. Market expects 4.7% on unemployment and 190,000 on Non-Farm Payrolls. I'm going to try trading in the wake of news tomorrow. Data will be released at 8:30 EST, so before I happily march off to work, I'll watch CNBC, see what the numbers are, then I'll ride the wave. Stop losses and take profits will be based on the Fib numbers. Wish me luck!
After 1 trade
Score (in Pips)
Market 25, Young Pip 0
posted by Young Pip at 9:54 PM
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