Well, it was the week's most important eco number. You don't get them bigger. We knew, that it would move the market with at least 100-150 pips - but not which way, north or south. You have to be ready for such action.
Yes, I do agree with you about being ready to act when big announcements come. I haven't been able to convince my job the same though. Still, there should be some interesting things happening in the next few days. Better to lose an opportunity than manage it poorly. As to your question on another thread concerning why using Pivots or the parabolic SAR in conjunction with MA's could help, it is twofold. The first is that they are derived directly than MA's, so they reflect the same information in a different way. The second is that by using both sets of information related in different contexts, the best of both indicators can be had, leading to better entries and exits. Well, that is the hope. My personal feeling is that TA tools just provide a framework to view prices. They do not predict anything themselves. Sometimes, when using only one indicator or several derived from the same methods, it can create a kind of tunnel vision that prevents me from making good decisions. So, I try to use a variety of different indicators to give myself as textured a picture of the market as possible. My max at anytime is 4 because I am not clever enough to handle more. Sorry to let this drone on, but I though your question deserved a reasonable answer. Now, I am back to the markets.
These are the trades I had for yesterday. Nothing impressive. Right now I am uncertain of the immediate general direction of the Euro/USD. Bought 3 lots at 1.2358 Sold at 1.2360 gain of 2 pips, $60 Bought 1 lots at 1.2354 Sold at 1.2362 gain of 8 pips, $80 Bought 1 lot at 1.2375 sold at 1.2375 wash Sold 1 lot at 1.2374 Bought at 1.2374 Gain 1 Pip, $10 Sold 3 lots at 1.2380 Bought at 1.237 Gain of 4 pips, $120 Total: 14 pips, $270 Normally, I really don't like going after small moves like these just because it is way to easy to caught on the wrong side of a big move. But, sometimes you have to adapt your strategy to the conditions you are working in.
Sold 1 Euro/USD at 1.2309 Sold 3 Euro USD at 1.2302 Current price is 1.2286 I am going to hold on for while. Looking for a potential drop below 1.2100. We'll see what happens
Closed out positions from earlier. The results are: Sold 1 Euro/USD at 1.2309 Bought at 1.2280 Gain of 29 pips, $290 Sold 3 Euro/Usd at 1.2302 Bought at 1.2292 Gain of 10 pips, $300 Total Gain of 39 pips, $590 Happy with trades, better than Monday.
Okay for today, I am selling three lots of Euro/USD at 1.2201. My feeling is that we should see it drop to somewhere below 1.21 by this time tomorrow. I think about 1.2217 should be my stop, but we'll see.
I am always interested in new approaches. The tools themselves really don't matter as much as the approach one takes with them. I have tried using the RSI before but got turned off to it after being burned a few too many times. Right now, integrating a MA 50 along with the rest of my set up. What I am trying to do now is concentrate more on longer term trades. It definitely requires a different mentality. Right now the Euro/USD is trading around 1.2280. I decided (maybe foolishly) to ignore my stop at 1.2230 and wait this one out. I still feel we will see it drop into 1.20 soon. We'll see
Okay here we go. Yesterday Sold Euro/USD at 1.2201 Bought at 1.2180 Gain of 21 pips, $630 For the week 71 Pips 6 trades 5 winners, one wash gain of $1490. I didn't like my last trade. Way too much risk for the reward. Excellent work B. Hopefully, I'll have days like that soon.