Tuesday, August 26, 2008

8-26 Looking back, at least a few trades

I realize that trading this market in August has been tough, to say the least. That being said, if I will stand back and realize that there can be trades come about that will pay much more often than they lose, then overall these trades will pay off. Today for instance, looking at the AUD/USD there was a nice trade. Of course all of these trades do not pay 100 pips but I can remember a time when I was happy with 10 pips a day. What happened to that LOL? Anyway, the yearly low on 1-22 was 8510. If you look at the weeks range and traded it there. There was a 138R of last weeks range and a 127 Ext. of the previous weeks range aligned nicely within a few pips of the yearly low. The low today was 8491. Again, I know this is against the trend but more often than not, if you manage these trades properly, they will pay and this one gave a good 50+ pip bounce.

GBP/USD set up a nice trade intraday, although this is not a set up that I normally trade. I sat there and watched price go to previous support, a yearly, monthly, weekly, and daily low, after it had travelled 160+ pips then retraced 80+ back to previous support and the 62% retracement, but still decided to pass.