Fellow traders,
Have a look at this:
I believe the trade ticks the boxes for a trend reversal long (scorecard at the bottom of the post). The only reasons making me hesitant to take this trade are:
1. Non farm payroll this week
2. There is a much better trade around the 1.2878 level where there is a strong horizontal. This also matches up nicely with a FIB 2.0 ext compared to the most recent retracement. The problem is we can't trade on hindsight so there is no guarantee it will reach this level!
What do you think?
Have a look at this:
I believe the trade ticks the boxes for a trend reversal long (scorecard at the bottom of the post). The only reasons making me hesitant to take this trade are:
1. Non farm payroll this week
2. There is a much better trade around the 1.2878 level where there is a strong horizontal. This also matches up nicely with a FIB 2.0 ext compared to the most recent retracement. The problem is we can't trade on hindsight so there is no guarantee it will reach this level!
What do you think?
| Date Discovered | 04/03/2013 |
| Pair | EURUSD |
| Pattern | Trend Reversal Long |
| Direction | Long |
| Order Price | 1.3036 |
| Stop Loss | 1.2977 |
| Risk | 59 |
| Target | 1.3157 |
| Risk:Reward | 2.05 |
| Trade size/pt | 0.84 |
| Order Placed | |
| Trade Executed | |
| Won/Lost | |
| Screen shot taken | Yes |
| Strong level of Horizontal Support? | Yes | Category B - FIB 2.0 level is best but this is a good horizontal |
| RSI Divergence? | Yes | |
| FIB extension level? | Yes | 1.272 |
| Bullish Price Action | Ye | Inside bar and low test |
| Reward Risk > 2:1 | Yes |
I took this trade yesterday & now I am in. I apologize with all our fellows that I couldn't share it on blog because the moment i found out it was about to hit the entry level.
ReplyDeleteNFP is not an issue as you can close your trade manualy if you are in profit OR lock the profit on Thursday (which you should be in few days.
It was necessary for me (probabely for all who got live account on 11th Feb) to go with this trade as mine/our first month is ending on 11th March so to switch from half percent to one percent rist per trade, the account balance should be in positive even if its £5 (according to Tom. So I hope it will go long as all technicals are pointing, if it does so then I will decide wether i need to lock the profit on Thursday if i will be able to OR close trade manually.
Had i not taken this trade, the chances were that I would stay on half a percent risk per trade for second month like others who hasn't placed any trade yet; which could have make much harder to achieve 9% in first quarter.
Finger Crossed;
if you check weekly chart it has crossed to the level of 0.618 & price is taking support of 1.300000 level which is big round number & pschycological level.
ReplyDeleteI didn't use the low of setup bar as stop loss level as it was quite tight so i gave my trade more breathing room by placing the stop loss on the low of big engulfing bar. It reduced the pip value so it will reduce the gains but trade is less likely to stoped out in case of volatility.
Well good to hear I'm not the only one in on this trade. I placed the stop in the usual place. Price will have to breach a soft support line for us to get triggered out so we have extra protection. Now it's a case of wait and see.
ReplyDeleteJust bear in mind that with NFP there is no guarantee that we will be kicked out of the trade at our stop even when we are in profit. Due to the volatility there is always a risk that we will be closed at a price well below the stop. However given the potential reward it is a risk I'm prepared to take....