Friday, January 25, 2008
Saturday, January 19, 2008
EUR/JPY Short Trade from 01/18/2008
Hello,
today it is Saturday and the FX market is closed. Let us review a profitable trade from Friday the 18th January 2008. I short EUR/JPY.
As you can see on the chart EUR/JPY was in a uptrend. The Stochastic shows us a beautiful divergence. The Fibonacci Retracements were at 157.30 (23.6%) and 156.97 (38.20%), which were my first target. At 156.97 you can see the up trend line and a support area in combination with the 38.20% retracement and the Stoc. divergence. => Short EUR/JPY with a stop-loss at 157.80.
Lets see what will hapen:
Yes, we have reached our first target! And now? Take profit? The Stochastic is oversold .The candle is large and green. Ok, let us set a stop at the 23.60 % retracement at 157.28.
After a break of the expected support area, we see a bouce back and we were stoped-out. Ok, thats trading! Let's see if this was only volatility. The next candle was red. And the former uptrend will be tested. Let's see what will happen in the next 5 minutes:
we drop out of our up trend. The candle closed below. Short at Market with the open of the next candle. Stop-Loss at our swing high at 157.33/35 and hope! Target next support level at 156.47.
It was right to short the market again! We reached the target after a few candles. I set a new stop-loss at 156.72 (50% retracement). I didn't close the trade because we have a nice downtrend on the 5, 15, 30 and 60 minutes charts and the Sroc. shows divergences.
The downtrend continues. The downtrend were tested about 3 times. The 4th time the trend broke and I close the position with 140 Pips profit!
And now? Will the downtrend continue?
I do not think so, I think we will see a bounce back. Long? I do not want to trade against this trend. A swing to 157.36 (23.6% retracement) is possible. In this area we see the upper downtrend line and the Stoc. is oversold, too. I think it is likely to see an up-swing to 157.36.
Next week we will see. Happy Trading!
today it is Saturday and the FX market is closed. Let us review a profitable trade from Friday the 18th January 2008. I short EUR/JPY.
As you can see on the chart EUR/JPY was in a uptrend. The Stochastic shows us a beautiful divergence. The Fibonacci Retracements were at 157.30 (23.6%) and 156.97 (38.20%), which were my first target. At 156.97 you can see the up trend line and a support area in combination with the 38.20% retracement and the Stoc. divergence. => Short EUR/JPY with a stop-loss at 157.80.Lets see what will hapen:
Yes, we have reached our first target! And now? Take profit? The Stochastic is oversold .The candle is large and green. Ok, let us set a stop at the 23.60 % retracement at 157.28.
After a break of the expected support area, we see a bouce back and we were stoped-out. Ok, thats trading! Let's see if this was only volatility. The next candle was red. And the former uptrend will be tested. Let's see what will happen in the next 5 minutes:we drop out of our up trend. The candle closed below. Short at Market with the open of the next candle. Stop-Loss at our swing high at 157.33/35 and hope! Target next support level at 156.47.
It was right to short the market again! We reached the target after a few candles. I set a new stop-loss at 156.72 (50% retracement). I didn't close the trade because we have a nice downtrend on the 5, 15, 30 and 60 minutes charts and the Sroc. shows divergences.
The downtrend continues. The downtrend were tested about 3 times. The 4th time the trend broke and I close the position with 140 Pips profit!
And now? Will the downtrend continue?I do not think so, I think we will see a bounce back. Long? I do not want to trade against this trend. A swing to 157.36 (23.6% retracement) is possible. In this area we see the upper downtrend line and the Stoc. is oversold, too. I think it is likely to see an up-swing to 157.36.
Next week we will see. Happy Trading!
Friday, January 18, 2008
Think about it!
Don't believe in anything simply because you have heard it.
Don't believe in traditions because they have been handed down for many generations.
Don't believe in anything simply because it is found written in your books.
Don't believe in anything merely on the authority of your teachers and elders.
But after observation and analysis when you find that anything agrees with
reason then accept it and live up to it.
Don't believe in traditions because they have been handed down for many generations.
Don't believe in anything simply because it is found written in your books.
Don't believe in anything merely on the authority of your teachers and elders.
But after observation and analysis when you find that anything agrees with
reason then accept it and live up to it.
Monday, January 7, 2008
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