So are the sluggish days of summer trading over? Hard to say yet, but I like to think of this type of movement as a very, very positive sign. Considering all the additional QE3 talk we could be in for some very interesting markets in the weeks/months ahead.
After a range-bound market yesterday we say things really open up prior to London today. Frankfurt is known for quick reversals and I love trading them for the typical 10-15 pips they offer. Occasionally though you get ones like the first trade today that just take off and don’t look back. When most traders are just getting ready at London Open, it’s nice to already have 30+ pips in the bank.
After that it was all about continuing to push with the bigger overall moves. If a counter-trend setup that fit our rules had come up I would have taken it (even if for only a smaller scalp) but today nothing with the extra evidence and patterns we look for did. So trading effectively today was all about waiting for the trades that fit our rules and entering on the shift of short-term momentum with an appropriate price pattern.
The markets may look different one day to the next but the setups themselves are quite repeatable if you know what to look for and have well-defined rules to work with. Not every day will be a 100+ pip home run but once you have been trading for a while the losing days should be few and far between and at that point it’s really daily/weekly consistency, not huge pip totals, that rule for long-lasting trading success.
Be sure to check out my Samurai Forex Trading Recap for today in the video below, where I go over exactly how I traded today including entries, management, and exits: