G’day Surfers, we did it again.
Despite a lot of uncertainty and mixed signals in the market yesterday, the Surfing The Pips© machine rolled on, maintaining our no loss record for 2012 on M30 strategy. Live & direct in our webinar, we managed to see through the congestion to find a classic StP setup and bagged 30 pips total. The setup came as an ABC of a reliable resistance trendline and although against our pivots, we took a long, entering @ 1.3145 and exited beautifully, before price action pulled back to major support @ 1.3115. To get the pips, we needed to follow our 7 holy steps to the letter, with good analysis, precise entry & stop loss, applying correct equity management, astute trade management and prudent exit. The market was really giving up very little yesterday, trading in a range of only 45 pips (ignoring spikes) and only 82 pips top to bottom. We were very happy to put 30 in the bank, under those conditions.
Another day – another log jam. Daily Pivot has once again crossed Weekly, to confirm the congestion of the previous 24hrs of consolidation, giving us mixed signals. Price action is welded to our major support/resistance level of 1.3115 and wedged firmly between Daily & Weekly Pivots. To us, this is a loud and clear sign of a directionless market. I think Michel De Nostradame would back out of trying to predict where next we are headed. (That’s Nostradamus guys). Whilst the charts look very similar to yesterdays, there are no clear continuation or reversal patterns jumping out at me. It’s a mess today.
The Day Ahead
Whilst the market is very confused, we still have a couple of Hotspots to play with. The resistance trendline I see is not as reliable as I would like so hopefully if that comes into play, they test it once more before giving us a setup. The support trendline is more reliable, having been tested 4 times, so I will nominate that as my Hotspot to launch my play of the day which is exactly the same as yesterday’s: a Short/Long combo targeting the strong support trendline that had its origin in January and bouncing off there, in search of Daily Resistance Level #1. I have included an intraday resistance line which will is
Have a good one everyone.
Geoff Pyne | Certified SurfingThePips.com Trader