This Week’s Swing Trading Round-up 12th May 2012

This Week’s Swing Trading Round-up 12th May 2012

Another relatively quiet Week for swing trades, not so much due to the lack of set-ups but more because I didn’t chase them as there was enough volatility to earn a fair few points out of day trading the Indices.

The only swing position I had open was  the Cable long and this was duly stopped out on Wednesday for -100, annoyingly at the lowest candle of the day as per this chart:

Not only can that be annoying but it was worse because I instinctively knew at the time that was the low for the day, I even posted so on the ADVFN forum at the time. But, there’s no point reversing long as you then open yourself up to psychological challenges and can end up making silly mistakes. The fact is, the stop loss was taken out, and that’s that. As far as I was concerned, that meant the long side of this trade was doomed and as I write this, Sunday night futures have just broken that low.

The charts I posted during the Week (in this post) outlining Resistance and Support either played out well in the short term, or, the set-ups are still awaiting validation. The problem here is, as I mentioned at the time, there are a number of correlations in those markets and FTSE has already broken it’s equivilent support so I’m concerned that it’s only a matter of time before the same happens to some of the others. The EUR:AUD set-up is one of my favourites but the price action leading up to the resistance defined in the chart is potentially bullish so I’d like to see how this resolves itself before jumping into a position.

Otherwise, I’m going to keep an eye on the first day or 2 of this Week to get an idea of how things are going to go, and from then on I’ll probably enter a couple of swings. If anything new crops up, I’ll get the analysis posted as soon as I spot it.

Hope you all had a good Weekend!

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