Ricex
Sergeant
- Messages
- 358
Hi,
this is a dollar yen trade that I took yesterday, it is still open but I thought I would try to present it as it happened, in stages. The trade actually lacks momentum now but we'll see what happens. As always it's trading with the 4hr trend.
So taking it from the beginning we look at what the market is doing. Here we can identify a ranging price action of around 60pips.
The price breaks out of the range and also breaks a previous swing low which was put in place before the price started it's range bound activity.
As the price moves away what we don't want to do is chase it. Placing a sell limit order allows us to wait for the price to retrace to a level we are happy to enter at. If on some occasions the price really shoots away then we would just have to reconsider the trade and look for an alternative entry point.
A mental Stop loss is placed 35pips away. For me if price reaches this level the trade will have been deemed a fail.
The momentum of the move did not carry through as hoped but the price action has not shown that it wants to move higher either, so we have to be patient.
At the break of yesterdays low on this pair I have now put in a real stop loss at breakeven. This trade is now what we call a free trade, and it allows us to go off and find other trades (better trades maybe!) without any worry of increasing risk on our account.
Take profit levels are 88.25, 88.00 and if we could get there 87.65. All previous major support levels.
this is a dollar yen trade that I took yesterday, it is still open but I thought I would try to present it as it happened, in stages. The trade actually lacks momentum now but we'll see what happens. As always it's trading with the 4hr trend.
So taking it from the beginning we look at what the market is doing. Here we can identify a ranging price action of around 60pips.
The price breaks out of the range and also breaks a previous swing low which was put in place before the price started it's range bound activity.
As the price moves away what we don't want to do is chase it. Placing a sell limit order allows us to wait for the price to retrace to a level we are happy to enter at. If on some occasions the price really shoots away then we would just have to reconsider the trade and look for an alternative entry point.
A mental Stop loss is placed 35pips away. For me if price reaches this level the trade will have been deemed a fail.
The momentum of the move did not carry through as hoped but the price action has not shown that it wants to move higher either, so we have to be patient.
At the break of yesterdays low on this pair I have now put in a real stop loss at breakeven. This trade is now what we call a free trade, and it allows us to go off and find other trades (better trades maybe!) without any worry of increasing risk on our account.
Take profit levels are 88.25, 88.00 and if we could get there 87.65. All previous major support levels.
