After yesterdays dull return this morning offered a veritable smorgasbord of opportunity. Having done my Relative Strength Analysis I was looking to Buy Yen and Sell either GBP, EUR or CHF.
Of those pairs the CHFJPY looked the best on my charts. (FXTrader Alan took the EURJPY). What did I see? Well there was a nice down trend, price had consolidated and there was a line of support along S1. (Pivot Levels not visible on this first Chart.)
I liked the set-up and decided to place an order to go short 2 points below the range/S1 at 8783. Stop-Loss was 88.05, above resistance with targets of +10, +20 & +50.
Price triggered the order and dropped a few points. It then started to put in a few low-test bars/ hammers and I was seriously concerned that I had a Bullish False Breakout on my hands and I should get ready to cover/reverse my position. I watched closely but as both Eur and Gbp were also moving down nicely against the Yen I decided to hold-on.
After 30-40 minutes I was rewarded for my patience / balls and price started moving down. T1 was at 88.73 and was hit for +10. T2 was at 88.63 and was hit very quickly afterwards for +20 as price collapsed across the board.
As you can see from the chart price just collapsed through the levels, took a quick breather at M1 before dropping hard south again. After hitting T2 I moved my stop-loss to just in front of my entry (to cover commissions) and was happy to let the trade run.
My final target was at 88.33 which was just a few points on front of S2. Price hit this point for a total of +50 points very quickly afterwards.
Overall a satisfying and pleasing trade. Pretty much identical to FXTraderAlan position on EurJpy however I scaled out as its my wont to do so and my position size for this was about 6 times what I’ve been trading during the proceeding trades.
My learning points:
Once again I need to look at adding to positions like this. I wish all my trades were as profitable and easy as this. The truth is that very few are. When I do get one I have to press my winners hard. There were chances for me to add to this position and I’m almost finished on a very simple adding on philosophy.
So a good day all round for Sandy, Al & Paul. Wouldn’t it be nice if all days were like this?