Wednesday 14th October – Cable +10 points

October 18, 2009

FX Trading

pw20091014 gbpusd 5 min double top

 

Ok another Trade at the european open.

Price had rallied overnight and had hit new highs.  When price tried to puch north again but failed forming a double top I was ready to short the drop.

I went short at 1.5969 with a stop-loss at 1.5996 above the high and a target of 1.5930 whcih was 5 points in front of the M3. (I find that I like using pivot levels as natural target points.)

Price drops strongly and break the trend line (which pleases me) it then rallies north which I’m expecting as I hope price will ‘kiss the trendline’ before reversing and dropping.  In this case it does as it asks and continues down. 

However when price forms a low-test reversal bar (or a hammer if you’re talking candles) then I start to become concerned about the change in sentiment and decide to cover my position early for +10 points. 

So I appreciate 10 pips is hardly likely to set the world alight however I’m happy as I know I’m building trust in myself.  One of the recent trading quotes I’ve heard and taken to heart is:

Trust your system; Trust yourself more.

I’m going to write a post on this particular subject in the near future but for the moment I’ll sit on my 10 points and take what the market offers me.

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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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