Jan 9 2009 Trade Setup EUR/USD

Today’s Recap:

  • I finally closed the short position I opened  on Monday at 1.3820 for a profit of +211 pips.
  • I opened three lots long at 1.3675
  • The first lot hit my limit at +55 Pips
  • The second and third lots got stopped out at -75 and -100 I should of moved my stops when I was up 55 pips.
  • 211+55 = 266   Losses = 100+75 =175

Total for the day was +91 pips

Setup for Tomorrow:

I am watching the Fibanocci levels and I am also watch the trend line.

The Fibonacci levels are telling me that we could move higher to 1.4700 but there is a downward trend line that mus be broken in order for that to happen.

So I will be setting my buy orders above that trend line. If the price breaks through that we will be heading up. However if it bounces off of that trend line we could be going down. I will be setting short sells if the price bounces off the trend wall and goes through the moving average. I will not be convinced of a greater downward move unless the price moves below the support of 1.3310.

Trade Setup

I will enter long at 1.3810

* 1st lot set with a limit and stop of 55 pips from entry
* 2nd lot set with a limit at 100 pips and a stop at 75 with 55 pip trailing stop
* 3 lot set with no limit 100 pip stop with a 55 pip trailing stop.

I will enter short at about 1.3585 after the price drops below the two moving averages

* 1st lot set with limit and stop of 55 pips
* 2nd lot set with limit of 100 pips and stop of 75 pips with a 55 pip trailing stop.
* 3rd lot set with no limit and a stop of 100 pips with a 55 pip trailing stop.

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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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