If you have some good analysis why not. Holiday markets can take 2 shapes, 1. moves can be exacerbated because some big-pockets can swing things around on the cheap, or 2. things might not move much at all or in tight ranges.
Today was Friday December 23st, how lucky that Christmas is on a weekend this year and the Forex market is open Sunday night December 25 all the way to Friday December 30th because somewhere on the planet they don't have Christmas...joking...lol. Not alot of news out of Europe but North America had Canadian GDP and the USA had a bunch of smaller economic news reports. I showed up and posted a chart of the Fibonacci cluster on the Daily Chart of the USDCAD to my members at SecretFXTrading and followers on twitter.
So the 38% of the late July 26th of 0.9405 to the October 4th high of 1.0667 comes in around 1.0179. Also the 38% of the same October 4th high 1.0667 to the October 28th low of 0.9894 comes in around 1.0184....but gosh that October 4th pin bar was such a beauty!!! Almost every major forex pair had a sharp reversal that day...only Cable the GBPUSD forex pair went lower to 1.5270 on October 6th when the Bank of England raised the 'Asset Purchase Facility' (APF) by 75 Billion to 275B....basically printing more money. More supply of paper, less value, however this was good news cloaked as bad because it will help the Economy, hopefully adding a few points to GDP, which would strengthen the Pound-Dollar...but perhaps it will raise inflation, which is a stealth tax...hmm good or bad or a bit of both....grey area, well you can shout, you can scream, but what offering solutions, we can all click a mouse button and place a trade, don't be too drastic, remember social cohesion, the status quo, don't want to rock the boat too much. Wow I got way off topic! Back the Loonie.
Anyhow the CAD GDP was basically flat, and all day the USDCAD pair bounced off this fib cluster. Generally I take 15-20 pips on either a half or a third of the position and move the stop to breakeven. Sometimes I stack entries and build a position up. There was a possibility that the 1st blue October fib level would break and the yellow july-early october fib would be tested which it nearly did but was front-run by a pip or two. Also notice how when the previous swing high was tagged the loonie would reverse back down into the fib cluster zone again for another go. Well how many times can you make 15-20 pips on half a position? After awhile you have racked up quite a few pips...of course it is easy to get greedy, hold the full position for a further move higher, just to get stopped out, give up your patience and leave the charts to start Christmas celebrations. Anyhow it turned out to be a good day and an extra nice bottle of champagne is in order. Here is the 5 minute chart of the fibonacci cluster zone mentioned above, with a summary of entries and exits, most exits were only half the position and the other half got stopped out, just to reenter...so did pay more spread than needed if the position had some more wiggle room but better safe than sorry, if the stop was 10-20 pips below there may have been a reason to hit it...remember the market wants to do business, even on Christmas.
Merry Christmas, Happy Hanukkkah or Happy Holiday
Magister Pips
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