Friday January 23, 2009 EUR/USD Trade Setup

Thursday Results:
I entered short at 1.3030 after the price hit the 38.2 retracement level.
The RSI was under 50

As always 3 lots.
1st Lot +55 pips
2nd Lot +100 pips
3rd lot is still open

Friday’s Setup:

The Fib trade was good so I am holding the one lot I have as I believe it will go lower. I believe we will test the 0 level on the Fib Retracement. So if we break that zero level I will enter short at that time.

We are currently in a bear flag so I expect a drop soon.

However, as always, you never enter a trade on what you think will happen. Because we just are not that good. We enter when the market tells us to.

Setup:
3 Lots short at a break of the 1.2840 level.
1st lot limit and stop at 55 pips
2nd lot limit at 100 and stop at 75 pips
3rd lot no limit with a 100 pip stop and a trailing stop of 55 pips

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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