Weekly Trading Update - 05-09 September 2011

Well it's been another fairly quiet week but I cannot complain because I had two winning trades out of two. There were no trades using my main 4 hour trading system this week, but the breakout system that I use found two winning trades.
The first of these was on Monday on the GBP/USD pair, which is the only pair that I use when trading this system. I shouldn't really of traded this one because I had completely forgotten about the bank holiday in the US. Nevertheless it still worked out okay in the end.
The overnight trading range was very small (around 30 points) and so I went short at 1.6150 when the price broke downwards out of this range just after 8.00 when the London market opened for business. It fell below the S1 level and the S2 level was just 27 points away, so this was a natural target price, and luckily the price continued falling and I was able to bank this profit.
The second trade occurred the following day on Tuesday. The overnight range was again quite small and this time I went long at 1.6108 when the price broke upwards out of this range. As the opening price was just below the pivot point, the R1 level was around 55 points away, so I simply set my target price 20 points higher.
As it turned out the price did spike upwards just after 9.00 and take out the R1 level, but I was automatically closed out for a little over 20 points profit long before then, which was quite annoying.
There were no breakout trades on Wednesday and Thursday because the overnight trading range was slightly too big on both occasions. Today looks interesting because it is now 9.40 at the time of writing and the price is still stuck in the narrow overnight range, which stands at around 45 points, which is just about acceptable. However I generally like to trade the breakouts that occur between 8.00 and 9.00 because they usually have a lot of volume and momentum behind them.
If the price breaks out now, which it is sure to do at some point, then it is unlikely to move too much because the mid-morning session is always fairly quiet as the markets are waiting for the US market to open.
So I think I am going to finish trading for the week and call it quits. There could be an interesting 4 hour trade on the FTSE if the EMAs cross downwards later today, but as I don't like opening new positions on Fridays, I am hoping that the price remains high for a little longer.