23/09/14 – 06:30 am – I switched everything on this morning to find that I have been taken out of my GBPUSD Short trade over night, giving a 1% loss on my trading account balance. This month all my usual technical indicators that I have used successfully in the past for Forex trading do not seem to be holding with the GBP type trades. It s these times I really have to go back through this trade and previously successful Forex trades and try to find what was different on the setup. In this instance there is a large argument I had plenty of opportunity to take small profits or Breakeven during the day after the near miss with the stop loss and then the range bound period. As I write this last post in the Trade Diary for this GBPUSD Short, my still open USDCAD Long trade is going against me after such a promising start to the trade last night and overnight. It as these times I, like many other traders, start to question my strategies on Forex and wonder if I should just stay with my equities trading that is much more successful. Chart as below.
22/09/14 – 18:00 pm – I was very nearly stopped out on this GBPUSD Short trade earlier on in the day and since then it was predominantly in a profit making position, even though small. I have decided to let this trade carry over to tomorrow as I was prepared at the outset to risk 1% of my trading account balance on this trade. There are two observations that concern me, in that the current bar has turned grey, showing indecision and noise in the Forex market for this currency pair and also it has opened and closed above the 6/4 MA high line. Chart as Below
22/09/14 – 07:30 am – This GBPUSD Short trade has triggered and momentum seems to be building with this return to the overall bearish trend on this 60 minute time frame. I hve also included the TJ’s Ellipse on the chart below indicating the high of the grey did in fact find strong resistance at that level. The Chart for this GBPUSD Short trade as Below.
22/09/14 – 06:00 am – This GBPUSD Short trade setup is looking good with the XTL breakout strategy combined with a good stochastic setup. The first XTL breakout bar was smaller or average than the preceding 20 bars and importantly the second bar did break the first bar highs. The previous bullish movement has crossed over on the over bought zone and the high produced with the grey bar is near the 0.382 Fibonacci retracement taken from the low when the stochastic last crossed in the over sold zone. I have decided on an aggressive entry and stop stop loss strategy on this currency pair Short trade as the combination of both strategies seem strong. Stop Sell order @ 1.6338 with the Stop Loss @ 1.6364 and the initial Take Profit Limit order @ 1.62855. Again with my broker spread I have gone 3 pips up on my stop loss within the broker platform for this GBPUSD Short setup. Chart as Below