USD/CAD Post News Trade Review
(click chart to expand)
The end result of this trade has two opportunites:
1) You take profit at the first momentum cross down on the 1 min chart. This occured 36 mins after the news and about 21 mintues after the entry for a quick 30 pips from "cross to cross".
2) Stay in the trade based on the 15 mintue chart. The channel is point up, so it should be ok. However, the stochastics looks like the pair is over bought and ripe for a retracement. Assuming I entered the trade after the news, I can't afford to ride out the pull-back. But if you feel oil prices are likely to continue to fall, maybe this is a longer term position trade to you and you are slowing scaling in your CAD shorts.
It all depends on your plan. You have a trade plan... right? ;-)
Sorry guys...that was really low !!!
Instead of giving a decent answer to my post you guys just went ahead and deleted it.
May I ask why?
I posted a fair question about why Mr Wayne's video pointed to one strategy while the coach in his site adopted a contrary strategy.
Posted by: Puluca | March 25, 2008 at 05:45 PM
Sorry. I did delete your comment. There were several "spams" posted about free ebooks and such and I deleted them "en masse". I may have deleted yours by mistake. I am sorry. Its the first time I've ever deleted something from this blog.
In anycase, just ping me in Bootcamp and we can discuss the various options at the time. As I explain in the review of the CAD news, there is more than one way to skin a rabbit.
If you scalped the news, as pointed out in the blog, you MAY have plucked a quick but small profit. It was a breakeven trade for me on the scalp. Very often, after such a trade, I walk away and breath before developing a new trade plan.
I wanted to also show an alternative setup for spot traders based on the bounce at support. As I was uploading the post to the blog, the setup produced a spike and I wanted to show the common follow through, so I posted the results to the blog to show before/after.
The bottom line. Short scalp was correct. Long spot was correct. Long and short in this situation, and all situations in forex, are both correct. Its just a matter of the timing of your trade plan.
Next time, if you need a detailed answer or feel you personal attention, ping me, Curt, Chris or David. I was in the room 90 mins before the news. Then about 2 hours after then news. And I've been in the room for the last 90 minutes. I'm available if you need me. With the other coaches included, we are available to help 12 hours a day.
Happy Pipping.
Wayne McDonell
Chief Currency Coach &
Commodities Trading Advisor
http://www.fxbootcamp.com
Posted by: Wayne McDonell @ FX Bootcamp | March 25, 2008 at 06:17 PM
Hi Wayne..thanks for explaining things a little.
Since I noticed some comments deleted on your youtube site I was affraid my post will have the same fate.
I still don't quite get how you and your coach could diverge so much ( since you was online ), but anyways thanks for stopping by and clarifying things a little.
Posted by: Puluca | March 25, 2008 at 06:31 PM