Friday January 30, Euro/ Dollar Trade Setup

Thursdays results:

I get excited when I have days like this. 🙂  I previously forecast on my blog that I would go short on the Euro. The pair was trading in a channel that was broken to the downside. In addition I predicted that the news would drive the Euro down against the Dollar. I was right on both counts and I had a profitable day.

Results:
Short 1 lot before news release at 7:30 am before the news release at 1.3125 no limit with a 100 pip stop with a trailing stop of 85 pips. The lot is still open and at the time of writing this I am up 210 pips.

Also when the channel broke to the downside I got in 3 lots short at about the 1.300

1st lot +55 pips
2nd lot +100
3rd lot + 190 pips and still open

Total for the day +555 pips 🙂

I hope anyone following this blog had similar success – if you did, please comment. I would be happy to hear about it.

Fridays Setup:

I believe that today we may get a bounce off of today’s slide. However I believe the pair will retest the 1.2762 low earlier this month. So I will be watching to see what happens. I am not going to enter short again unless the current slide, bottoms out and I will be waiting to re-enter on a pullback. The Euro/Dollar is forming a Descending Triangle and I am forecasting that the triangle will be broken to the downside. When it does we will be ready.

Setup:

Do not enter short unless there is a pull back then look for re-entry. To find a good re-entry point on a 4 hr chart draw a fibonacci retracement on the current downward move.

3 lots
1st lot stop and limit at 55 pips
2nd lot stop at 75 pips and limit at 100 pips
3rd lot no limit, stop at 100 pips and a trailing stop 85 pips

Here’s to good trading and keep me updated on your success.

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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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