April 5th Trading Session in Review

In last April 5th there was some volatility caused by major news like the PMI in Europe, UK, and the US. The US also released the Crude Oil Inventories and the Fed Minutes. Despite this, the Alert System was able to catch some major moves outside of the news’ release. Below you can find some trades made throughout the session, with explanatory comments.

1. USD/CAD 15 Minutes – VSA SHORT Alert

Here we had a weak VSA signal with above the average volume showing supply. 3 bars after the short, the trend rebounded and volume started showing demand. Closed 1/2 when it hit TP1 and position was closed near the break-even level.

1. Short on weak VSA signal (sell stop order). Placed the Stop-Loss and Take-Profit at the suggested levels.
2. Close 1/2 trade at the blue dot level, +8 pips.
3. Close trade when trend rebounded, a little above the opening price. Nearly break-even.

2. GBP/JPY 15 Minutes – Dynamic Trend LONG Alert

This was a case in which the Dynamic Trend Alert was able to indicate a major and fast move in GBP during the session. Because the signal was strong and the volume above the average, it was secure to close the whole trade at the final TP level.

1. Long on dynamic trend alert (buy market order). Placed Stop-Loss and Take-Profit at the suggested levels.
2. Hit take-profit 45 minutes later, +43 pips.

3. CAD/JPY 15 Minutes – Dynamic Trend buy signal

1. Long on dynamic trend alert (buy market order). Placed Stop-Loss and Take-Profit at suggested levels.
2. Close 1/2 trade, +10 pips.
3.  Hit take-profit 4 hours later, right before a major demand volume, +24 pips.

As the trend remained strong, the suggested  TP could be canceled. Instead, you could wait for some signals of weakness to close the position and let the profits run.

4. AUD/USD 15 Minutes – INVALID VSA Signal

This VSA signal was invalid and wasn’t taken because:

1. There was a resistance below the take-profit levels.
2. The signal occurred after a very wide demand bar. When the volatility is too high, wait for a correction + low volume bar to go long instead.

This is a case in which the signal and respective buy stop order appeared too late to catch the main rally. Traders should not enter the market at this point, with a resistance nearby.