Wednesday 13th June

by Liam 09:31 0 comments

I took a long position on Euro fairly early in the day, a combination of volume analysis and a point and figure entry. I moved to break even and held the position over night and am still holding now. We're moving around an interesting area now so i'm considering closing the position. Anyway, to the charts.

EUR/USD 60min

The grey/black zone shows the spread of the 4hr NFP (not to be confused with PNF!) announcement which was on the highest 4hr volume all year. We've been bouncing along the top of this line for a few days now, shown at 1, 2, 3 and 4. The green zones show 1hr high volume zones which will be important to any up move. The volume at 4 formed the basis for my long position. High volume on a down bar with the next bars up confirming some buying. On the point and figure chart we then printed a triple top breakout, which is one of my favourite signals, so I decided to enter long. My entry was 1.2525 with a stop at 1.2445; 80pips. I could've closed at 1:1 when the market reached 1.2605 yesterday but I decided to move to break even and see how it plays out. PnF gives me a target of 2660, which happens to be the high of the week where we gapped up on Sunday. So I have that in mind for a target.

EUR/USD 60min PnF

As I type, the last hourly bar had quite a lot of volume on it, as shown on the chart above. So I have to watch the reaction to this for some confirmed selling.