Tuesday 26th June

by Liam 10:44 0 comments

I was working a morning shift yesterday but still managed to get a trade in during the day. Firstly here's the 15min chart. I had quite a lot of zones that I was adding as the day went by.

1 - Highest 15min volume from Monday.
2 - Highest after London open.
3 - Almost identical to 2.
4 - Highest at the time and the zone I took my trade from.
5 - Volume and weakness that came in and stopped the second half of my trade.
6 - Highest volume of the day, presented another opportunity.

EUR/USD 15min

To be honest once zone 5 crossed the majority of zone 3 I could have deleted 3 to tidy the chart up a bit, but I left it on for this chart. Zones 4 and 6 are the most important ones, they're important as we see yet another example of volume printing at previous volume, the black line at price 1.2459 is the high of the 4hr NFP zone from the 1st of June. I love seeing these zones coming back into play and this gave me the confidence to take a long based on this area.

EUR/USD 4hr

Below is my entry on the 5min chart, we saw the high volume come in at 4 on the 15min chart, the next 5 bars on the 15min chart are up, all with slight increases in volume, there was definite buying / demand at 4. Within this I moved to the 5min chart and saw the perfect test into the 50% area of 4. Nice narrow spread, low volume and closing near the highs. I set my order just above this and was taken in to the trade straight away. It tested the 50% twice more before taking off in the direction I wanted. Painless trade. It's unfortunate I got shaken out to test the NFP zone again but that's what stops are for. Made 1% on this trade.

The volume that came in at 5 made me aware that price could fall but I was safe at this stage with my stop at BE+1 so I let the trade run as per my strategy. This could have easily been some absorption volume pushing through the previous zones on the my chart. This obviously wasn't the case. With the volume at 5 in mind I didn't see any entry worth taking to enter a sell position.

I've also highlighted another 5min test within zone 6 but given the low volume on the up bars before hand as well as the time of day, i'm not sure I would have taken it. I was getting ready to leave work at the time so I wasn't in front of the screen to see it unfolding. Hard to say whether I would have taken it, I don't think I would have.

EUR/USD 5min

Not a lot happening so far today (Wednesday) but there will hopefully be an opportunity to come yet, plenty of time left in the day!

Cheers,

Liam