1. GBPUSD (5 Min Chart) – Pivot Trade Long 16.06.2014 – After Mark Carney’s comments last week, this trade was an absolute no brainer. It was the first efficient entry of the week as price pulled back to the pivot point whilst at the same time offering up a tasty 1.11% reward to risk trade. The first trade setup arrived at 10:15 with several more arriving just after. You could visually see how the pivot point was acting as significant support as price tried but failed to break south. Eventually the bulls took over, pushing price to profit by mid-afternoon
2. GBPJPY (Daily Chart) – Pivot Trade Long – 16.06.2014 – This trade was effectively using a currency pair where it was strong vs weak. Pound was and still is very strong right now and with quantitative easing still taking place in Japan, the JPY is relatively weak. So taking a buy trade on this pair is taking advantage of this concept. The daily chart was already well into its stride therefore making entry difficult however the pivot strategy on the 5 min chart provided the perfect framework for a short term, efficient trade on a bullish currency pair. The most noticeable component of the trade was the +1.57:1 reward to risk on offer. Triggering on Monday morning, the trade took a while to hit target (2 days) but it was worth the wait.
3. CHFJPY (Daily Chart) – Power Pivot Trade Long 17.06.2014 – A fantastic double bottom formation arose at the start of the week with Monday’s bar failing to break lower, instead finishing the day as a strong bullish low test bar. This was backed up by the oversold stochastic indicator and horizontal support giving confidence in the move higher. The market just about broke higher on Tuesday, triggering entries (stops under the swing low) and the market has pushed higher ever since almost reaching +1%.
4. S&P500 (Daily Chart) – Power Pivot Trade Long – 16.06.2014 – Breaking to new highs last week in combination with stochastic convergence, the trend was well and truly intact so when the retracement came and we noticed some subtle hidden divergence, a long trade was beginning to look interesting. Friday’s bar then finished as a key inside reversal bar. Trading the break of the high, with a stop under the swing low would have provided an efficient entry and the trade sits up around +1.33%.
5. CADCHF (Daily Chart) – Power Pivot Trade Short – 18.06.2014 – Price tried and failed to close above its previous May high. Instead it presented all the signs for a reversal. Tuesday provided the biggest clue with a key inside reversal bar. This alongside the double top pattern, the horizontal resistance and very subtle divergence provided the evidence to take a break of Tuesdays low (entry) with a stop above the swing high. Price followed through and the currency trade is currently just shy of +1%.