Posted on July 21st, 2009 at 3:00 PM
"Money never sleeps, pal..." Remember the phrase from the 80's movie "Wall Street?"
Well this is a good example, it's 2:46 AM ET, and we have a potential XTL Buy on the 60 Minute British Pound. While the trade has not triggered yet there are a few things I like about it. First, we have what looks like a False Bar Stochastic Sell, but if you look closely you'll see that we have broken the 61.8% retracement level. This means that the odds of the market making new lows is very low. While the XTL is a lower percentage trade when you have this type of additional evidence that the market should continue to rally it makes me want to take it that much more. Using the standard XTL Breakout rules for entry we have a buy stop that can be placed at 1.6440. On my XTL Trades I like to go right into using the 6/4 DMA for my stop, if this trade is triggered I will keep a trailing stop along the Red DMA on the chart.
