I was in big trouble with my wife yesterday. I said I wasn’t going to trade as it was a bank holiday.* All the family came back from the beach for lunch & I sneaked into my office for a peek at the charts “just in case;”- it was so obvious I had to take it. ):
If you want to keep up with what i am doing in real time, then keep an eye on my twitter page (marc12001)
I posted this on twitter; “wife not happy, wasn’t going to trade today but gbp reject at 200ema 15 min & 50% fib just begged 4 a buy. she says i’m addicted. so” ?
price broke down, bounced around, then broke back thro 200ema 15 minute chart
A more conservative entry would have been where the red arrow is pointing; confirmed break of 200ema up & break of 21 ema. A really conservative entry would have been price closed above the 34 & 55emas. But I took it where I did for a lot of reasons;
Price spiked through, but then pulled back up through the 55 ema & the bollinger bands on the 1 hour. This candle closed above the 55ema on the hour. I entered 2 lots here at 1.4855. This was a little riskier than I would have liked as it hadn’t broken & closed above the 200 on the 15 minute, but as I said in sundays “4th may gbp possible break up” post I was expecting it to go up & the 200ema was a logical place to pullback to as well as it being a 50% fib. of fridays chart.
Also i only had a small stop at 1.4825 (just below previous low for the day) so my risk/possible reward was excellent.
The good thing about the trade was that it quickly got to my 20 pip 1st target, but as it was a holiday & I wasn’t supposed to be trading, i just moved the entries to 20 pip profit and went out and left them both to run.
Twitter again “locked in 20 pips profit on both lots. going to let them run. think this a 4 hour trade. off back to the beach 85 + deg 2day, good luck2all”
Optimistic target for 1st lot was days previous high of 1.4980. Back from beach 3.5 hours later and it had hit it ! + 120 pips on a bank holiday, unbelieveable.
Final twitter post “back from beach. 1st lot just closed out +120 pips gbp. 2nd lot stops moved locked in 60, balance to run, sometimes i just love forex !
I screwed up here. I then moved the stop too close to the price. I was taken out. I gained 100 pips, but as thought it was a 4 hour/daily move i should have let it run. It has since gone another 100+ pips.
*Often on an international public holiday there is hardly any movement which is why I didn’t intend to trade. Hey I’m a forex trader, if opportunity arrives, take it !
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Filed under: Example Forex Trades • My Trading Results
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New to your blog. Very nice call. Thanks for sharing.