Jan 6, 2009 Trading EUR/USD Strategy

Yesterday the trade went exactly as planned. I entered 3 lots at 1.3800 and on the first lot I set a limit of 55 pips to get a quick profit. The price dropped right through that like a hot knife through butter. My next lot I had a limit of 100 pips the price dropped through that quite easily as well. The third lot I let ride, the position is still open the stop right now is 1.3799 I have it set at +1 pips with a 210 pip trailing stop.

Recap:

  • 1 lot +55
  • 1 lot +100
  • 1 lot still open right now locked in at +1

Total +156 pips and more to come.

Jan 6 Trade Strategy

OK,so we went down to hit the 1.3546 level on the 5th. Then after that point it has hit a consolidation period where we are range trading the range is about 100 to 60 pips. The current trend is down so unless we break the 1.3800 range I will be looking for a short trade. The current chart formation is a bear flag so I expect it to trade in this range for a while, possibly until the start of the London Session or maybe longer I don’t know, then take a drop to lower levels.

However I will be watching for when it comes out of the range.  I will be watching for the price to break the 1.3520 range. At which point I will be looking to sell short the EUR.  I will not be looking for a long trade until the price breaks 1.3850 at that point I will begin to look for long trades.

Here is the Plan:

* Sell 3 Lots EUR/USD at 1.3520
* Set Limit on first at 1.3475 for 55 pips set stop at 1.3575
* Set Limit on next at 1.3420 for 100 pips set stop at 1.3600
* Let the third lot roll with no limit a 100 pip stop at 1.3620 with a 210 trailing stop

Here is a closer look at the bear flag:

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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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