24 Jun This Week’s Swing Trading Round-Up 24th June 2012
The main feature of this Week was closing the long term Swings I’ve been holding for quite some Weeks.
I covered the DOW shorts that my system had taken some time ago but unfortunately I messed up on the trade losing out on 700 of the points that had been available at the previous lows. What’s more, I think DOW will probably go back down to re-test those lows but I’m having a little trouble reading the system at the moment so more work is required to get the exits right.
EUR:AUD hit my desired target level as shown by red circle in the chart below. It actually broke it briefly and rallied back. The rally is more than likely a retracement in an ongoing down trend, but for me, I’ve had what I wanted from this trade so the decision was made to just cover it at the target level for 373 point profit, which gives an aggregate overall profit of 244 points as I’d already closed half the position earlier on in the move:
AUD:NZD was starting to look a little oversold showing some positive divergence on smaller time frames, so that combined with uncertainties over it’s future direction was enough for me to decide to cover that position in it’s entirety. I tend not to trail stops on AUD:NZD (shorts) because it can be such a slow mover that you risk losing points gained on the retrace whilst also paying overnight financing charges for a potentially unnecessary length of time.
The main pair I’ve been watching for a new Swing trade has been GBP:NZD through watching some areas of major support that are congregating near current levels. I did enter long on an intraday signal with a view to re-assessing at the day’s close, but unfortunately by the close it’s little intraday rally had petered out and the decision was made to cut the trade which in the event gave 2 points profit and turned out to be the right decision. I’m still interested in this trade but for now the Market is not giving any confident signs of a reversal, so just watching for now.
In the meantime, I hope your having a great Weekend, and I’m keeping my eyes open for further low risk reliable swing set-ups which have been few and far between over recent Weeks. GBP:NOK turned out to be a great swing entry from when I pointed that one out, but unfortunately a 90 pip spread from my broker had somewhat put me off that one!