A month of GBP/JPY through the eyes of ACD Methodology Mark Fishers ACD Methodology from The Logical Trader
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Monday Jan 7th 2008: 3am - 3am EST
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Comments for Jan 7th 2008:
Here we are at Monday, the first 'Real' full trading day of the year 3am to 3am EST. For nearly the whole day you can see how the market respected the ACD lines drawn after only the first 30 minutes (which represent the opening range).
A pretty big opening range led us strait into a failed A-UP, which after failing to fall back into the opening range was able to penetrate A-UP and shortly after pierced C-UP but failed to sustain that level.
Could the system have made you money today?:
1. Technically A-UP was achieved but unfortunately its confirmation was not generated until it had already pierced the C-Level. So due to that... no trade.
2. Fading the failed C-UP with a short and a tight stop is the best option to trade this morning. There was little US or EUR news for the NY morning but at 7am ECB Pres Trichet spoke about the world economy and early afternoon Treasury Secretary Paulson spoke as well. Speeches like these can generate volatility both before and after any comments and all trades should be made with that in mind. Minimize risk at all times.
3. The first C-Down failure was a good opportunity to grab a few pips, take profit at the bottom of the opening range.
4. The Asian open is really the next clear signal with a failure of the C-Down after a NY afternoon sitting in No-Mans land. Going long with a tight stop would have been prudent and as the Aisan session went on you can see it was a good signal.
Not a good A-Day trading day but plenty of pips were offered on 3 C-Level failures.
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