Well, I finally have found the time to start this, and it's been a troublesome day trading. I focused on the EURUSD and GBPUSD pairs, watching the dollar index move as it undulated below the 25 period moving average. Of course, today the trading was muted a bit for several reasons, not the least of which was the Royal Wedding. Most of the currency pairs that I normally watch were of course consolidated with profit taking at the end of the month and the traders attempts at sifting through all the reports. In consolidated markets such as today, rather than trading the hour or four hour markets (which gives me more time to play of course, I drop to the fifteen or even the five minute. With todays market, I found the best opportunity was in scalping the GBPUSD and EURUSD one and five minute charts.
It's been my experience, that the currency markets and currency trading in general is of late concentrated within the sideways movement with great spikes in one direction or the other. Mostly the efforts of traders working the many reports that seem to move the markets now, it however I believe also involves the spikes increasing volatility by hitting stops that are much too close to the market today. Such volatility makes for a very interesting event while you capture your pips as the market moves one direction then retraces.
So, now that I'm working towards becoming a regular, I've been asked to include some of my trades and elaborate on some market bias that I see developing on the major currency pairs. In addition, we'll be developing a trading room where unlike others that I've participated in, we'll not just watch the market but participate in it learning from each other as we go.
Till then, have a great weekend and remember to hug the ones you love.
Richard Stephens, Senior Trader, Blue Heron Wealth Management, Inc.
