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Tuesday, 18 January 2011

Forex Trade 2

Trade was made looking at stochastic and MACD zero lag indicate a buy signal on the 4hourly chart,also cftc showed a slight discrepancy with the euro being shorted since the 11th of Jan,on referring to the charts i noticed the euro as being on the rise since that day.A trade was placed at market as follows:

Trigger Signal: resistance met and held.formation of evening star reversal pattern
Trade direction: long

Stop loss: 13301
Target price for exit:Trailing stop loss 120 and 13800 target
Distance between stop and target: 499
Distance between stop and target/ 4: 124
Potential loss(risk):  £50
Actual Entry point: 13401
Trade size (£ per point) :0.50pence


Comment:

       This trade is now closed and it features some of the mistakes i make while trading, owing to the fact that i don't usually like holding positions over the weekend i reduced  my profit target to 13600.This target was reached at around 18:50 GMT but i wasn't able to collect on my prediction because i had closed out my position at 13512 in haste before  US markets opened.Hindsight as usual painfully revealed that all i needed to do was set a tight stop loss.However total pips gained in this trade was 111 and profit was £55 pounds excluding the cost of the spread.Account at break even. 


Verdict: Loot








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