21st Feb – Market Analysis

Came to the office an hour later this morning.  Deliberately slept till 7am, so that i could get my 7 hours in, and also refrained from alcohol last night, even though I was at a cocktail bar with live Jazz!

Small changes in the FX matrix rankings.  USD, JPY, NZD and AUD have all gone up or down by 1 point.  Thus the main camps are still the same.  Looking to buy GBP, EUR and CHF.  Looking to sell the weak ones – USD, JPY, AUD or CAD.

Some UK news at 9.30, and some US data at 3pm today.  Last day of the trading week – heading into the weekend.  Also CAD data at 1.30pm.

NZDUSD continues to be the only pair with a S1/S2 setup that contains two currencies from two different camps.  The other S1/S2 setups are all weakness/weakness combinations – which I will not trade against each other from a STAM perspective.  I did actually look through the seven weak/weak pairs that were in S1/S2 setups – all of them looked rather messy.  8.40am gone.

S3 setups now – took 15min to look through all the FX charts.  Took short S3 on NZDJPY.  Separate post to follow.  9am.

Indices & Gold – There is no STAM setup.  No clear S3 setups at this point, but see my qualification below!

I realise I now have an issue with the Stochastics indicator.  I have changed the settings to 5,3,3 to allow it to be more responsive for the S3 setups.  However on the D and W timeframes I might want to stick with the 9,5,5 setup.  I will need to look at that this morning.

9.45am – onto work with the trading strategy documents.  See you back for the 11am candles.

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2 Responses to 21st Feb – Market Analysis

  1. 11am Resolved the issue regarding Stochastic settings. I will use 9,5,5 for D and W timeframes – to have the readings a tad less responsive when I am trading trend-following with STAM. I will use the 5,3,3 settings for 4H timeframes because I want the indicator to be more responsive when trading reversals with S3.

    No setups on FX, equities or gold at 11am. Note the 4H candles on equities on FXCM platform close 1 hour earlier, thus at 6am, 10am, 2pm, 6pm each day.


  2. 3pm update – closed both earlier S3 trades – for a net loss of -0.23R. On close of 3pm candles, took new S3 trade on NZDCAD as well as 2nd stab on NZDJPY, shorting at the same level as earlier today.
    [Checked equities at 2pm – no S3 setups]


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