Trade Closed: 2011-04-14 6:25 ET
Looks like I caught a break with this one as EUR/USD did rally enough during the Asia/European trading session to trigger my short order at 1.4500. That area held as I hoped and the pair dropped like a rock through the morning European trading session.
I decided to take profit at PDL as it was a strong support area over the past trading session and ahead of US PPI and initial claims data.
Closed at 1.4418.
Total: +82 pips/ +1.36% gain
So, a nice trade, but I could have done a bit better in my exit decision. The only thing I would have changed was to wait for a consolidation before closing manual from my original profit target. Again, something to be conscious of in future trades.
Trade Idea: 2011-04-13 23:20 ET
Before you move on, for those who are not familiar with my framework, signals, setups, or acronyms, please visit my discretionary day trading blog here.
This big part of this trade’s directional bias is based on some reversal signals I saw on the four hour chart I posted earlier on my Twitter and Facebook page. After seeing that, I decided to zoom into the 15 minute timeframe to find a suitable level to place short orders.
Earlier in the Asia session, I saw strong support at the PDL, so I’m thinking the bulls may be in control for the day. But if there is a retest of 1.4500, that might be an area for traders to drop sell orders like it’s hot as MaPs held nicely all week. And with no major data points on the Forex calendar until the US session, and hopefully no major surprises, that mini-rally should hold, along with technical levels.
So, I’ve decided to short at top DATR/MaPs (1.4500). My stop will be about half of the daily ATR (115 pips), and my target will be the area in between the PDL and bottom DATR. Here’s what I am going to do:
Short EUR/USD at 1.4500, stop at 1.4560, pt at 1.4400
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.
Touch back with me ahead of the US PPI data later today as I will decide on the next step based on Asia and Europe’s price action. Stay tuned!