Day by Day, hourly analysis of EUR/JPY currency cross on the foreign currency market (FOREX). Sell and Buy signals on a technical basis Use signals at your own discretion.

Friday, October 1, 2010

Oct. 1, 2010 AM Update


This has really turned out to be a somewhat unconventional Friday trading session. Instead of plateaus and intermittent profit-taking, there has continued to be a huge surge to the upside.

We opened fairly high above yesterday's low (>90 pips). Which was a good sign this uptrend was to continue into today. There was been a strict adherence to the 100 EMA as far as touches and bounces are concerned. If you went long at the open @ "113.884" you'd be up >35 pips (3x + our 10 pips daily TP). Remember, moving averages are the basic, banal math. Don't bet against the math, or you'll get burned. If PA is trending above a moving average, it will continue to do so until it crosses below.

All in all, this has been a great Friday with lots of volume. I wouldn't stay in any trades over the weekend, as there is a lot of uncertainty concerning austerity measures both in America (QE 2.0, credit unions being bailed out) and Europe at the moment. You really don't want to be caught in a trade if there is a huge drop over the weekend.

Good luck trading and have a great weekend everyone!

Summary

- Should have gone long @ open "113.884" and played the 100 EMA. Good for 10+ pips.

- Always be mindful of the moving averages. Where is PA in relation to an individual moving average (MA). This is how we gauge trends and trend strength.

- Take a break for the weekend. Open trades are susceptible to huge weekend swings that can hit SLs and ruin an otherwise excellent trading week.

30 comments:

  1. Thanks for the updates, enjoy them!

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  2. Good advice about bailing out of the trades over the weekend, will keep that in mind!

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  3. Breaks for the weekend sound good to me :)

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  4. Nice blog and interesting stuff u have here ill keep coming every day to see whats new

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  5. so you think things are starting to trend back up?

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  6. so things are looking up, nice.

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  7. Taking the advice, good info man.

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  8. Thanks for this dude!
    Really helped.

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  9. nice advice, thank you for it(^_^)

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  10. thanks, that was a long week but you kept the excellent updates :D

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  11. Awesome info. The FX is still a bit over my head, but I would love to get into it.

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  12. Hmmmmm,stuff to think about

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  13. This is something I should get into...

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  14. Over my head, but still interesting

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  15. I'll try to take your advice and not lose all my money. thank you, kind sir

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  16. always look foward to this great info, thanks

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  17. Nice. Was wondering about how much I should start stocks/trading with if I plan on doing it as a long term investment. You seem like you know what you're talking about. Followed!

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