The days leading up to the election and after the shocking news that Donald Trump will now be the next president of the United States, we all saw USD pairs go wild. Descending hundreds of pips on each pair to shortly ascend back to even or even surpass price before the election.
Even with all this craziness the day of and after election day, the markets went back to doing what they do. It was interesting to see how each of the different markets reacted but in time we will see the real effect of the Presidential election.
I entered a few trades today. Starting with the EUR/JPY that closed before I got back before my doctors appointment:
Still toying with the Ichimoku indicator, I entered this trade because it avoided USD; going to stick away from it for a few days). I entered as RSI jumped off the 50 mark and all other criteria met.Current price is above the Kumo (cloud), Tenkan & Kijun Sen Lines and Chinkou Span (pink dashed lines) is above it’s relative price. I was slightly turned off by how far current price was above the Kijun Sen but after reaffirmation from other indicators and timeframes, I entered with -40SL and +80 limit. As you can see, limit hit and I’m 80 pips demo richer.
Trade 2 – EUR/CHF:
My 2nd trade was with the EUR/CHF pair. Think I entered too early. Or not at the right time? Don’t really know how to time my entries just yet. Gotta still work on that. Anyway, all criteria met, unfortunately, I didn’t take into other indicators as confirmation which is why I think I entered to early. At the moment, I am a -8 pips.
TRADE IDEA – EUR/GBP Sell position:
If price reaches below the cloud in the gray circle on the Daily chart, I will enter a position as sentiment has changed into a downtrend. On the four hour chart, the downtrend has been quite slight and when price reaches the gray chart, then it will be confirmed. Problem is, there should be a correction for price to come say hello to the Kijun Sen. Stay tuned.