Tuesday, March 29, 2011
Trend for 29th of March 2011
The news from Great Britain failed to take pound down and start a trend down (gbp/jpy pair), but as the news was more in line with the expectations it actually forced pound to go up against the pair and you could have used this to your advantage by placing a buy stop order above the channel that gbp/jpy has been in for a few days. The pair was in a range between 131.00 and 130.00 levels. It is a rather small range for the pair and the breakout had to come. However, it did not come where I expected.
Anyway, when any important news is released you can trade it in a very simple way. You just place a buy stop order above the most recent high point (in this case 131.02) and a sell stop order below the most recent low point (in this case 130.11). When one order is opened (in this case long), you simply remove the other order and go with the one that is open, wherever the market takes you. You would then move your stop (in this case placing it below the most recent lows of 5 minute charts). No more ideas for possible trends today. See you tomorrow.
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Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.