Good day fellow forex traders!
Time for another The Koala System ( Forex ) review.
Last week, we noted that early Mondays are not good to begin trading as the price action may be unpredictable. We also explored a new indicator, the 50 EMA. This indicator was suggested by a member of the community. As long as the prediction of the signal does not match the indicator, it is a no go. Simple as that!
Looking at the EUR/USD 15 minutes chart above, we can see that most of the week remains in the no trading zone.
Price action was either
- Too spiky
- Close to the 200 EMA
- Flip flopping
We must remind ourselves that The Koala System is all about patience and discipline. Having no trading positions is the most common “position” for this system. As this was the week after the Euro Zone Bank Stress Tests, investors were probably edgy.
The first opportunity came weekend. Just over 30 pips, this was easily missed. However the second opportunity had the potential to be a big winner if the proper trailing stop was utilized. Almost 100 pips in fact.
I’ll see you soon trade safely.