Lots of sideways movement on the charts this morning and plenty of false signals which I guess you can expect with an unsure market. As ever, using the 5 and 10 minute chart together saved me from entering any dodgy trades.
This afternoon I had a trade that very nearly didn’t qualify. It was in the last minute of the third bar on the 10 minute chart and since it has to hit the entry point within 3 bars to qualify I thought it wasn’t going to be a trade but it did dip down giving me the ‘bong’ to go. Good thing too as the price dived down netting me a fantastic 76 pips.
Now this trade lasted all afternoon and up to 7.10 this evening and an interesting thing happened. As I now set my stop exactly 3 pips away from the official 5 minute chart position (because I got stopped out early last week due to the difference between IQ Feed and IG Index prices so I gave myself an extra 3 pips buffer) I actually narrowly avoided getting stopped out (for a good profit) and the trade went on to take another nose dive in the right direction. So on the chart you can see it getting stopped at 1.9809, but my stop in IG INdex was set at 1.9812 and it didn’t hit it.
I looked on Metatrader and saw there was support at the S2 line plus the 200 MA on the Daily Chart, which explained the sideways movement but the market decided to bust through that and head on down towards S3. I had to move my stop manually from here because tufxp had stopped, thinking I had hit my stop already, so I just moved it down keeping 15 pips away from the current price and planned to take my profit at S3 on Metatrader, but it retraced slightly and I got stopped out at 1.9780 giving me 76 pips profit on the day.
So already over £1000 up on the week. I really do like TUFXP.