Tuesday, July 14, 2009

07/14 Day Trading FOREX

Today was another great day! After discussing recent trading activity with my partner (and wife) we decided to weed out trades where the Fibonacci gap (price target) is less than 8 pips, this is after Yesterday, when I had several trades with a small price target, once you figure spreads and execution slippage, you end up taking a lot less than 1:1 ratio. So, I'm observing but not trading those set-ups.

I also avoid taking positions that have significant resistance/support barriers between the entry and price target. For instance, a set-up where the SMA 50 is in the way, or the daily open is in the way.

1) Short GBP/USD: Took this set-up after price failed to break out the top, waited for a good entry and got a bearish engulfing candle, I entered at the low of the candle, wanted to make sure that we cleared the EMA 5 before jumping in.

2) Short USD/CHF: This 1-2-3 set-up looked good to me, I thought we had cleared the daily open, however, as it turns out, it held on to price and bounced it higher. Lesson learned 3) Short AUD/USD: I was looking for a short opportunity on AUD/USD, it had been moving up and started failing. The entry was the bearish engulfing candle piercing the SMA 21. It went right up to the target.

4) Short GBP/USD: Took this 1-2-3 reversal as prices faded my upper trendline. Got on at the break of the lower 2 and it reached the target right after it.

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