From a Forex Factory forum post by user RoBik:
"Before the advent of radio, the only means of communication across the Atlantic Ocean was to physically connect the continents with a transatlantic telegraph cable, which was operative in 1867. The exchange rate between the United States dollar and British pound is still colloquially known as "cable" by financial marketeers on account of the fact that the rate was originally transmitted via a transatlantic cable."
I've done ok this year on most of my cable trades because the Pound Sterling has continued to lose value against the US dollar for most of the year. Early this week, after taking a shot going short EUR/JPY and getting burned, my next setup search yielded quite a little gem that helped recover most of those losses.
Looking back about a week on the 4 hour timeframe, you can see the hallmarks of a downtrend. Lower highs and lower lows. Sold short at $1.5105, my stop was at the last swing high, and my limit was the bottom of the candle body (excluding the wick) on the reversal candle of the previous swing low. Bread, butter and jam for 72 pips.
Post a comment. Let me know about something you'd like to see on the blog. Drop a line about a trade that worked for you.
STT
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