Afternoon Scoop
Today was quite a roller coaster of emotions, as the market never makes it easy. However, we managed to get through the day, and I took a couple of trades that we’ll review for insights on how they went. So, let’s dive in and see what we had today.
Markets
- News: Today is the first day in over a week where I don’t have any significant news to report. Although I prefer not to focus on this segment, it’s crucial to stay aware of anything that could impact our trades.
- S&P 500 futures update: Today was quite a day for day trading, with lots of volatility and a wide range of price movements up and down: up, then down, then up again.
- Forecast: Although we experienced a drop after this morning’s trendline break, we retested the levels properly, and at the end of the day, we got the push that was needed. This is a good sign, and hopefully, we’re rounding out here and can push higher in the coming days. However, with the 200-day moving average up above and flat, we could encounter some choppy trading.
Chart Analysis
AMD Trade Breakdown
The stock had a nice gap up this morning, but it was too extended for me to jump in. So, I patiently watched for a slow down in momentum indicated by the MACD. Eventually, the price touched the top rectangle three times and tried to break that level before dropping and failing fast below the bottom red rectangle. I waited for a pullback into the zone and entered the market once I saw a candle coming straight down. To manage my risk, I set my stop above the last swing high it made and gave myself a 1:1.5 risk to reward ratio. Even though I was shorting above the 200-day average, the move seemed straightforward, and I could easily identify my exit area. I liked my odds.
EUR/USD Breakdown
This was a forex trade. Although I don’t trade Forex as frequently as I do stocks, I found a setup I really liked. Firstly, I identified all my indicators lining up. The MACD had a good run, and there was a pullback that touched my moving averages. Moreover, the direction was also up in line with my trade. Once the price touched the purple line, which was the 8-day average, I entered the market with a 1:1.3 risk/reward ratio. My aim was to capture a quick trade, and I did so successfully, securing 7 pips in just a few candles.
Daily Wrap-up
I had a great day today, I can’t complain. I took two trades and both ended in the green. Although they were small positions, I’m happy with a win every day! Consistency is key, and these little wins will eventually lead to big ones. Take care, and let’s prepare for tomorrow!
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