Hello everyone,
Today I wasn’t seeing that many interesting setups on my charts to be honest. In fact, the only Forex pair I was following was GBPCAD for a short entry. In the hourly chart there was a clear level of support throughout the week and, should it give way, I was ready to jump in right to the throat. There were two side-elements strengthening the setup as a whole:
- The long-term outlook: which was clearly bearish. No matter what time frame I’d look into, I was seeing price breaching through support all over the place.
- The news: there were two related news announcements today: the Minutes from England and the Wholesale Sales from Canada - the minutes was bearish for the GBP and the wholesales were bullish for the CAD, so both of them combined were indeed leveraging the perspective for a short.
I triggered my entry one minute after the Wholesales because absolutely everything was pointing south. In the chapter #5 of my Forex trading course I talk about blending technical and fundamental analysis, and today was clearly a fine example of how utterly profitable binding them both actually can be.
Anyway, I am going to leave the trade open for the long term. In all fairness, I am not quite sure where this thing could go to or how far it could run, but I think it’s worth the shot especially now that my stoploss is comfortably sitting at breakeven! Few months ago I also spotted an intraday trade with long-term potential and finally I was able to squeeze +280 pips on that one. Let’s see if I can repeat the feat!
POSTERIOR ENTRY: I finally exited this trade on the 7th of January 2008 for a +358 pips profit.
11 comments to “Perhaps a long-term shot?”
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20 December, 2:19 am
I remember that long term trade very well. I believe it was the Eur/Usd based on the 4 hour chart.
20 December, 2:05 pm
Hello Michael.
Actually, it was on GBPUSD. This is the link to that day’s post: http://www.hectortrader.com/2007/06/19/gbpusd-perhaps-a-position-trade/
Cheers,
-HECTOR-
20 December, 6:36 pm
great time to go short because ALL GBP pairs are down dramatically
20 December, 6:43 pm
Absolutely Ryan. In fact, on today’s video I actually talk about the recent generalized drop on GBP across the board. It was the currency to sell for sure!
-HECTOR-
20 December, 7:28 pm
thanks hector anyone could jump on the choo choo after watching your vid . Eurcad and even usdcad show similar patterns.
that spike low correlates with the usdcad low. Can it really get down there again? or further? in the light of usd bulls waking up again?
the gdp has already done 1000 pts since the highs. there has to be a retrace soon?
20 December, 7:49 pm
Hello Richard,
I really have no idea how far it could. I try my best to never have any bias in my head as of where price is heading. As long as it keeps dropping, I will continue searching for shorts, regardless of how far it’s gone to.
Prediction = disaster when it comes to trading :)
-HECTOR-
20 December, 8:55 pm
thanks.
are you adding to the position?
do you add to positions?
28 December, 7:47 pm
Hello Richard,
I should have added to this position, but I dont actively trade through the Christmas holidays. Non-the-less, this is certainly a perfect position to add some more lots half way through!
-HECTOR-