Although the Veteran’s Day holiday yesterday made me cautious about narrow range, doji bar yesterday, it gave a “trade” day, breakout setup today. See the Trade or Fade report below-it was a doji, the narrowest bar of the previous four days, and was nearly half the size of Monday’s.
Given the Yen’s positive correlation with equity markets (see yesterday’s post, The Forex Tell?), the Yen has been a good proxy trade for equities. Below is a 5 minute intraday chart for December Yen futures, with the Trade or Fade levels shown. After spending a quiet night last night, the Yen saw a rapid advance this morning as stocks sank. The long entry trigger was at 8:00 AM at 10331, the first profit target was at 10412, hit at 9:30. R-3, the final profit target was hit at 10:05, for a profit of $2362.50.
For more information on Trade or fade, including a link to sign up for a two week trial, viisit the web site here: http://trade-or-fade.danielstrading.com/
