Bank holiday trading
Hi All,
Today is Bank Holiday Monday in the UK and in my previous post, I mentioned that I don’t like to trade the market during these times. Best to wait for the traders to come back with some volume to start again.
Well, that’s certainly for the markets which are directly affected by the UK bank holiday. In other places, it isn’t a public holiday so I looked at the charts, in particular, for something which should be affected directly by the UK holiday.
I saw a pattern in the Forex markets, specifically the USDJPY cross pair. The market has been heading downwards for a while and it looked like we currently have a countertrend play. If you look at the 4 hour chart, the stochastics are heading higher and we had an ascending triangle pattern before the market broke towards the upside. I entered at 99.88 and was targetting 101.20 which is the 100 day MA on the 4 hour chart. However, I closed early at 100.72 for a 84 pip profit.
You can see that the market in the 4 hour now looks way overbought so it’s better to be safe than sorry.
I should get back to trading the S&P emini tomorrow!
