Very strange day for me. I was pre-occupied with the euro/gbp & as a result missed moves on the other pairs. I was not helped by the fact that i had been awake half the night monitoring the pair. I was convinced there was a big move coming on it. In truth i thought it was going to go UP with a bang !
I managed to catch 20 pips off the 1st lot that I longed at 90.20 & 30 pips from a further pullback that gave me entry at 90.12. Both 2nd lots were taken out at entry. So mid morning and i was 50 pips up. Next i longed the same pair again at 90.03. with a short stop (just below the 200ema on the 15 minute @ 89.88 for a loss of 15 x 2 = -30 pips.
I still thought the pair were heading up, so was a little hesitant to short, but eventually got in at a confirmed break of the same 200ema on the 15 minute chart & a fib just below @ 88.80. I took 20 pips profit off the 1st lot & then got out too early on the 2nd at the 200 ema on the 1 hour, for only 30 pips gain. As i write the price has just fallen another 60 pips.
As you can see on the 15 minute chart below, there were clues that the price was not going to go any higher. The top arrow shows how price has again broken through the bollinger bands (remember my bollinger band lesson on main site http://www.forex-fxtrader.com/bollinger-bands.html ). This candle was also followed by a spinning top candle = indecision.
I entered short on lower area (confirmed break of psych & 200ema)
The lower arrow is where i finally accepted what the charts were telling me ! and I shorted. The short was taken because price had broken through the 200 ema and the candle closed below it. I only needed a short stop, so the risk reward was excellent.
The moral of this story is do what the charts tell you. NOT what you think. Also do not become so preoccupied with one pair and miss opportunities on the others. In truth, I have found trading to be very difficult in April. This sounds a remarkably stupid thing to say when you consider i am currently 1222 pips up for April, but it honestly hasn’t been easy and i am using lots of trading methods that i dont usually.
Todays total + 70 pips
April total so far (posted on here and twitter) + 1222 pips
Want more of this? See these posts:
Tagged with: - Learn Forex • currency trading • euro/gbp • Forex Advice • todays forex analysis
Filed under: My Trading Results
Like this post? Subscribe to my RSS feed and get loads more!
Hi marc,
can you tell me what are setting of your indicators ? you are using bb and 5 emas (200, 35,55, ?,?) based on the screenshots ? is there any other indicators you use to analysis your entry ?
Cheers
shant
you should have received a copy of my metatrader chart settings when you opted in via the subscribers box. That has the settings for all the emas & has macd and stochastics. I use macd for divergence sometimes. I dont use stochastics too much anymore. Recently I have been experimenting with rsi and a few other settings on the longer charts.
I look closely at candle patterns/ positions of emas / breaks or bounces of support and resistance for entries, on the 4 hour charts. Then go to the 15 minute charts. If my longer term charts tell me to go long I look for confirmation on the 15 minute charts.
For example; If there has been a 5/8 ema cross up or 34/55 ema cross up on the 15 minute chart, this would confirm a movement up. I also look for pullbacks. If price breaks an overnight high or low 70+ % of the time it will pullback. If you buy when it breaks you often find it will pullback 20/30 pips. This gives you 2 options. You can buy at a better price. Or you avoid getting into a trade which then turns against you.
I will do an article on entries and pullbacks in the future on here, but For more information as to how I trade check out the lessons on the main site