Today there was quite a lot of news, but the main event was the NFP (non-farm payroll) which caused a major selloff, flipping the market risk-off. The EUR/USD had been heading up the past few days, and I spotted a good opportunity to short it.
Gold also exhibited the “tipping point” price action, a similar setup I used for my past 5 out of 5 winning Gold trades. I shorted it, expecting the news release to confirm my price action reading.
As seen from the chart, Gold first spiked up to squeeze out weak players and to trap some bulls, then plunged over $10. To give you some perspective, a $1 move is equal to 100 USD per lot (meaning $10 is 1000 USD per lot). Naturally, this hit my TP (profit target) which I had placed near that level. Strangely, Gold recovered fully and more in the very next bar, but thankfully I had already taken my profits.
I decided to call it a day after this, and had some beer and chips in the office before heading out for Bak Kut Teh supper with some other forex traders. Overall, this was a good week, with a 72% hitrate and net profit of over 16k. I look forward to maintaining my consistency and trading with even greater size.
I will be sharing my market outlook on stocks and forex on Sunday.