Saturday, May 23, 2009
Prime example of Trend Fridays
I have been trading for a few years in Forex now and one of the few lessons I have internalized is Friday's trend is not to be taken lightly. The entire week has been USD negative and Fridays NY action was no exception. With this in mind there was really only one trade to take today. Buy GU. Short EU was a losing proposition as was selling GJ. Working with the trend rather than against it on Friday is a conservative strategy but far less painful than my normal method of taking both sides of the market. Any day but Friday, I don't have a problem with it. There is a very good reason for the one sidedness of the market today. Not just the historical observation that markets tend to trend on Friday's but due to the holiday weekend today's market was unbalanced and certainly there are less short term traders in the market who are looking for counter trends today. In my experience, all of these conditions lead to trend days.
Posted by Peglegtrading at 4:53 AM