ForexSpirit

Another technical hitch meant I was late stepping up to the plate this morning. I upgraded my network router about two months ago to Cisco’s all-singing and all-dancing, top of the line E4200 model. It has been a nice upgrade from my previous router. I make the most of the dual band feature and the extended range is great.

It has just one niggling issue: it completely freezes up at random times. It was doing it about one a week which was getting annoying. After doing a bit of research I placed the router on some makeshift stilts so that it would have better airflow as heat dissipation might be the culprit.

I got three weeks since adding the stilts, so a decent improvement, but I think the issue can only be properly resolved by a firmware update when Cisco figure out what is causing it to lock up.

Identifying the network problem and waiting for the router to reboot ate into the first few minutes of my trading time. Once I was up and running I saw that the market seemed to be a in a slightly bearish mood.

Bias: short
Conviction: medium

Another test of the support at 1.4760 looked likely. I set myself up to be short to start with while looking to potentially flip to long if we reached the support level.

The green entry was based on the bounce from the resistance level at 1.4785. I had my TP level set at the prior minor low area of 1.4773. I was within a few pipettes of being stopped out at BE at 6:30 EDT but price went back down and I netted 10 pips.

The first entry in the blue sequence was not great. I based it off the three touches of the support level of 1.4773 and the small push up that occurred before I hit the buy button. Price went immediately against me and broke through the support level. I decided to hold and manage the position given the lower support levels at 1.4762 and 1.4754.

If I had not been long there was a great opportunity to place a short at 6:47 EDT; price had just rebounded from 1.4763 to 1.4770 and was now pushing back down. It would have been a good place to sell and grab 5 pips as the low at 1.4763 was tested again.

Instead I had to look for long positions. After the double bottom at 1.4763 I added a second leg and was looking for a move up to 1.4770 to get at least a break-even sequence. But 1.4770 seemed to be a bridge too far in the final few minutes of the hour, so I bailed out as close as I could to that level, taking a hit of 2.5 pips and thus giving back half of the gain I had made on the first trade.

If I had held on into the 7:00 EDT hour I would have been able to close the trade at BE or even pull in some profit, as price started a rapid ascent all the way back up to 1.4790 within the first 10 minutes. Coulda, shoulda, woulda. Small comfort after the fact. But it’s nice to see that I had a good read of the market even if I couldn’t extract anything within the time constraints I had.