Monday 5th October – Cable Trade +48 points

October 16, 2009

FX Trading

 

pw20091005 gbp false b'out 5 min

So first trade.

Based on what I mentioned in my previous post I’ve included a trade from the morning of Monday 5th October GBP/USDe 5 mins chart to show how I traded.   You may notice I’m using a couple of indicators on the chart which I’ll explain. 

MACD purely for divergence

10 SMA purely for trend and for stop loss. 

I thought price was making a double top and was waiting for a possible reversal. Price actually pushed north above the previous high and also the 1.60 level however it was a big final push bar with also some lovely divergence on the MACD.  When price started putting in shooting stars formations each with a lower high then I was ready to go short.  When price dropped below 1.60, recent lows and broke the trendline I went short @ 1.5994 with a stop at 1.6025. 

Price continued to drop and I trailed my stop behind the 10 SMA.  Did consider closing it at around the 5975 area as that was overnight support level but when it broke I let it run.  Price continued down and when it started to slow and go sideways I got ready to close.  It started to form a triangle so I felt it could continue down but when it pushed up through the triangle resistance line I covered @ 1. 5946 for +48 profit.

 Learning points:

1.  I need to look at ways to add to my position when I get price dropping like a stone.

2. I need to be a bit more ballsy and consider sometimes reversing my position when I go to cover. 

A fine start. (Readers should note that I started this adveture on 5th October…but only started the blog on the 16th October. I’m back filling trades I’ve taken since the start so thaat you can learn from them. This is a way to keep me honest and trading well by having to share my trades with the world).

About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

View all posts by FXTraderPaul

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One Comment on “Monday 5th October – Cable Trade +48 points”

  1. fxtraderpaul Says:

    Nice trade Paul…ohh you sent that to yourself. Get over yourself Wallace!

    Like

    Reply

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