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Trade Closed: 2011-04-12 04:43

EUR/JPY Daily chart

WHAT A RIDE! I knew I was on to something when I first spotted that double-bottom setup on EUR/JPY! But alas, all good things must come to an end. This trade finally died yesterday!

I actually thought that this pair would continue surging up the charts. Price had me fooled when it finally popped above the 123.00 handle. I took this as my cue to keep pressing my advantage, so I bought another full position (my fourth) at around 123.27 and moved all my stops to 122.15, only to find out that this was a top and that the pair was headed for a big retracement!

As you can see, it dipped down to as low as 120.15, and so my joyride finally ended at 122.15. Here’s how it all played out:

  • First position at 116.20 : +595 pips
  • Second position at 118.45 : +370 pips
  • Third position at 122.15 : +0 pips
  • Fourth position at 123.27 : -112 pips

Total pip-count : +853 big ones!

Boo yeah! This translates to a 4.12% return on my initial 1% risk capital, making this my trade of the year to date.

As sad as I was to see this trade end, I have to admit I’m quite pleased with how it turned out. I may not have hit my ultimate target at 125.00, but I’m happy with how I was able to press my advantage on this trade.

Also, I’d like to give a quick shout out to all of those who joined me on this crazy trade. I felt confident all throughout this trade knowing you guys had my back. Thanks fellas! Hope we catch more winners together in the weeks to come! Peace!

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