Doji Time

Well, I got a much better handle on the new FIFO rules with FX Solutions. The good news is that I won't have to deal with these once I switch over to the new brokerage that I'm reviewing. Things are so much simpler there and they have a lot of very friendly features for traders. If you are interested in checking out the new brokerage - visit www.summerstreetfx.com.

Today, the market threw some curves at me a bit. Since we hit a double top on the Great British Pound (GBP) the last couple days, I expected the market to swing back to start strengthening the dollar a bit. However, that never materialized, even after the 9:00 AM Pending Home Sales report that came out.

Instead, the day came out as a near perfect doji. A doji is when the market finishes the day pretty much where it started going up and down during the day, so the daily candlestick looks like a plus sign. It usually signifies a reversal of trends. It looks as though I just may be a day early on the reversal.

I did not make very many trades - only 4. Two small losses, one small gain, and an open trade. Net pips for the day: -30 pips. If I expected a doji day, I would have had a much different result with a lot more smaller trades and a much higher pip total. I don't like it when I have a loss for the day, but it does happen sometimes.

Here are the daily stats for Tuesday, Aug. 4, 2009.

Open

High

Low

Close

Pip Interval

GBP/USD	1.6926	1.7001	1.6887	1.6936	114
EUR/USD	1.4413	1.4429	1.4366	1.4407	63

USD/JPY	95.25	95.45	94.35	95.22	110
GBP/JPY	161.21	162.13	159.99	161.26	214

Today was an excellent day for snipers (short term momentum trades), because the market just kept bouncing back and forth. The interval was not so pronounced today as the last several.

What this means:
It was pretty flat today, but volatile. The market ended virtually the same as it opened with a lot of bounces back and forth.

May the pips be with us!

The Pipmaster