Last week was another profitable week for Dynamic Traders and we spent less time than it takes the average person to commute to work in London.
Friday was NFP and while the scalpers tried desperately to pick up a few pips, we managed our existing positions and did nothing. The end result was more profits at the end of the day and all this without the stress faced by the news traders. All our positions have added profits except for AUDUSD.
We are now watching the GBPNZD for a shorting opportunity. For more than a year this cross has been in a range and as you would expect, Stochastic picked up the highs and lows of that range quite well. We don’t look to trade the range so have stayed out of this but now that price is testing support, we can start to become interested once again.
The chart shows a weekly view of the GBPNZD. The trend prior the the consolidation was down and after every big move we go through a period of consolidation and this is exactly what has happened. After the consolidation we either have a continuation or reversal. For a continuation, price needs to break support and then fire a short signal before we trade this. For a reversal price needs to clear the red resistance zone and then we can consider long positions. Either way, based on price behaviour at present, we want to add this to our watchlist.
For those who use Advanced Get, you may wish to use further confirmation by waiting for a bearish Stochastic False Bar.
Good trend trading.