Channel High: 1.2915
Channel Low: 1.2896
Channel Width: 19
Profit Target: 1.2936
Ecnomic Indicator: None
Time of Release: N.A
Volume @ Time of Release: N.A
Profit Given: YES
Setup Checklist:
Breakout of Channel before Time of Release: NO
Volume Breakout of Channel before Time of Release: YES
Economic Indicator Votality Measure: 0
Today is the second day after the markets got Bernanked. Trading during asian hours was cautious, thin and non-volatile.
The EURO channel was formed nicely prior to the opening of European trading hours. EURO prior to the breakout was traded thinly pending several european data released at 3.50p.m to 4p.m. Many people do not bother to know about the intricate workings of the complicated forex network that links nations and connects continents. The following has been my observations (excluding days that emcompasses the wait for high volatility economic indicators):
1) European dealers tend to come in to deal for the day at around 3-3.40p.m
2) U.K dealers tend to come in to deal for the day at around 4-4.40p.m
3) U.S dealers tend to come in to deal for the day at around 10-10.40p.m
4) Asians ... don't bother. They aren't big volume players in the FOREX/FOREX Futures market during the Asian timing.
Today, as the breakout occurred before 3p.m, the recommended profit should be 20pips. With several low volatility economic data slated for release, you can choose to do a trailing stop to ride your position. But as i have observed, when the EURO dealers come in after 3, your position gets stuck in this 50-50 game. Risk it or blow it? Blow it at 20pips i reckoned.
As you can see from the chart, the market gapped down thereafter and continued a gentle downtrend till the closure of the market. Trade with caution during these timings. These periods of risk exposure might best be your friend and yet your FOE. It all depends on how you utilize them. If i have choice of my best friend, i would choose Bernanke =)
