A month of GBP/JPY through the eyes of ACD Methodology Mark Fishers ACD Methodology from The Logical Trader
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Wednesday Jan 30th 2008: 3am - 3am EST
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Comments for Jan 30th 2008:
Fundamental backdrop today was adding much to the agitation of the market, it was said that 78% of the analysts had already built in a .50% rate cut on top of the .75% cut just last week. In the end the .50% was all we got so complete chaos was avoided.
Could the system have made you money today?:
Once again we got an A-Up followed by a C-Up, but after the rate announcement the GBP/JPY pair shot down through and past all our ACD lines by 100 pips before failing a retest of the C-Down. It was an impressive move for the mid afternoon NY session. Price had also remained beneath the pivot range until the next day's levels were calculated for after the London open.
1. A-Up was quickly achieved and confirmed, though it was a few hours really trying to get away from that level. A good signal and entry if your stop was wide enough to cover the spikes on the downside 20 pips or so beneath the A-Level.
2. C-Up was tested for a few hours before breaking through and being confirmed. Price action never made it far beyond the level mostly due to the uncertainty of the upcoming rate news at 2:15pm ET. That being said it was still a good signal and you could have still made your pips for the day.
3. After the news, trading the failure of the highs and price passing down through the C-Up would have really done well if traded, even with a small position you could have done better than your actual ACD signals. A good day for those following the ACD lines for sure.
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