Wednesday 11th July

by Liam 09:51 0 comments

I took two positions yesterday, both short on EUR/USD. Two charts below, a 15min and a 5min. The charts aren't up to date as of typing, these are screens I took yesterday after the trades.

EUR/USD 15min

EUR/USD 5min

There was a high volume zone formed early in the morning and once we pushed below the 50% and printed a No Demand on the 5min chart I placed my order on the low and was taken in straight away. My stop was above the high of the zone.

A - Initial target for first sell was at 1.2250, I was aware of the high of Tuesday's highest volume zone at 2256 providing "bouncability". I was watching this area for a bounce and when this happened I closed for a small profit. Which is just as well really, because I would have been stopped as it pushed up. I'm happy I was aware enough to close out the position, it just goes to show how well these volume zones work. The push up produced another high volume bar on the 15min which leads me to my second entry.

The next high volume zone was quite narrow, only 14 pips. With this in mind I decided i'd look for ND into the lows as I didn't think ND into the 50% would give me enough breathing room for a stop etc. Once we pushed through the lows and printed ND this was the perfect entry and I was taken in on the following bar and a small push down. We then found support at the 50% of the earlier volume zone. This surprised me a little as I always give more weight to the higher volume zone so I thought the selling apparent in the higher zone would push through the lower volume zone from the morning with relative ease. As we all know, this is rarely easy! So price took the scenic route, got fairly close to my stop above the high before pushing back down again. I must admit there's an element of luck to this trade, but i'll take it all day long, we all need a bit of luck from time to time.

B - My target for the second trade was at 1.2255 which just so happened to be the high of Tuesday's zone again. (Ok, it was 1 pip lower). Upon approach to this level I was again waiting to see the reaction. We touched the high and started pushing up again. This was enough for me and I decided to close the trade. Of course this time we then pushed down again and hit my initial target. I had originally planned to close both halves of the trade at this level, given the bounce on the first trade. But this wasn't to be. Either way, still made profit over the two trades and i'm happy to see the account look a bit healthier!

FOMC announcement caused a flurry of activity and high volume yesterday evening so that gives me a nice wide zone to keep an eye on today. Should be an interesting day as we're making new lows and i've no intention of shorting right at the lows. A push up on high volume would suit nicely to prove to me there is further weakness and give me some space to short into.

EUR/USD 15min