EUR/USD Breakout Trade – Position Closed

Trade Update: 2013-10-31 2:53 am ET
Guess I probably should have reacted sooner on this one.

EUR/USD was holding above the 1.3800 area before the weekend. The euro bulls just weren’t feeling like pushing it any higher though, as profit-taking eventually took over the markets early this week and pushed the dollar higher across the board.

EURUSD

Price broke below the trend line right around the time when it also went below the 100 SMA. I probably should have closed early by then to avoid any more losses huhuhu. On my next trades I’ll remember to just close my trades as soon as my initial setups are invalidated. No more hoping for the next support or resistance to hold!

That’s it for me today! I’ll finish up my Halloween costume for now but I’ll be back soon with another trade. Thanks for sticking with me and giving me advice!

Trade Idea: 2013-10-24 2:36 am ET
With risk sentiment going all over the place lately, I decided to give shorter time frames a shot!

EURUSD

This time I saw a possible breakout trade on EUR/USD. As you can see on the 1-hour chart, the euro bears look like they’re losing a fight above the 1.3800 major psychological handle. It didn’t help that it’s also a ceiling of an ascending triangle.

It was kinda risky entering a position ahead of the euro zone PMI reports, but I’ll be watching closely what I’m seeing turns out to be a fakeout.

For now though, here’s my trade plan:

Risked 0.5% at 1.3815 with my stop loss at 1.3735 (daily ATR size and below the triangle). My initial profit target is around the 1.3900 major psychological hurdle but I’m willing to adjust and maybe add to my position depending on how strong the euro’s rally is.

That’s it for me today! What do you think? Got any tips? 🙂

XOXO,

Huck

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  • MO

    Triangles (double hooks) are not triangles at all, but two ideas related to a channel. For instance, your ascending triangle is both a sideways and rising channel. Breakouts simply move from one idea (channel) to the other &, as you may have learned from a study of Forks, channels can double in size; look for larger patterns to connect to.

    If you move your uptrend line to the top of your triangle and use the same angle at the place where price rallied to the triangle then you will see that you are within a larger channel.

    Triangles are Channels, Channels are Triangles, most chart patterns are related to one another.

    • Hucklekiwi Pip

      I see the channel that you have pointed out. I probably should have placed a wider stop loss or enter at a better price. Thanks for the tips! 😀

      • MO

        I trade big charts (6 & 56 hour) with 30-45 pip stops and smaller. The secret is to enter on a 2 minute chart while placing and moving your stop along the extremes of the larger charts. The next thing that you need to do is maximize your gains; it is not enough to sit back and let price move to a take profit area. When you “add” to your position size your stop will move closer to your latest entry price: by 1/3 if you increase your size by half, by 1/2 if your double your size, and by 2/3 if your triple; if you modify your fibo with these three rets then it will enable you to add size and move your stops to maximize gain and normalize risk. You can also use these same rets for your initial lot size. If your min size is 2 lots with a max stop of 30 then you can trade 3 lots at 1/3, 4 lots at 1/2, & 6 lots at 2/3; notice that your min stop size is 1/3 of your max and that you want it to make sense to use said size on a 2 minute (10-15 pips, some people use 8 pips)
        As the boys like to say, “once you stack (orders) you never go back”.

  • thanks so much for pointing this out,this does really interest me and i ned to find out a little more about it.
    How to take care of a baby

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