The Week of Monday 16th November 2009

On Monday 16th November, the market opened with negative divergence forming on the 15minute chart. We were looking for a chance to go Short on a valid break of the 1.4954 Support line but it didn't happen. When price eventually breached the Support line, it closed at 1.4904 which was obviously too far away. The strong move was mainly catalyzed by the speech of the Federal Reserve chairman around 6:15pm.

Tuesday's trading started off with the market drifting in the downward direction. The first clear entry to go Short was signaled around 11:15am when price breached the 1.4923 Support line. Entry was at 1.4920 and the first position was closed at 1.4893 around 12pm for a profit of 27pips. The second position was also stopped-out at 1.4893 around 2:45pm for a profit of 27pips.

On Wednesday, price started out drifting in the upward direction. We took a Long trade when the 1.4894 Resistance line was breached around 8:00am. Entry was at 1.4897 and the first position was exited at 1.4937 at 10:45am for a profit of 40pips. The second position was exited at 1.4975 (for a profit of 78pips) around 6:15pm when a clear reversal pattern formed on the 15minute chart.

Thursday's trading was quite similar to what we had on Monday. The market started out drifting in the downward direction and therefore, we were looking for a chance to go Short on a valid break of the 1.4910 Support line but it didn't happen the way we wanted it to. When price breached the Support line around 8:45am, it closed at 1.4898 which was just too far away. We ended up staying out of the markets on Thursday.

On Friday, we had an opportunity to go Short when price breached the 1.4911 Support line at 8:30am. Entry was at 1.4909 and our first position was closed two and a half hours later when price hit the 1.4883 mark. We exited that position with a 26pip profit. The second position was closed at 1.4855 around 3:15pm for a profit of 54pips.