19/11/09 – Profiting from CHFJPY +10, +20 & + 50

November 19, 2009

FX Trading, Trading Set-ups

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?

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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!

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3 Comments on “19/11/09 – Profiting from CHFJPY +10, +20 & + 50”

  1. Melissa Says:

    Nice work Wallace! I’m delighted you had such a good morning.



  2. Sandy Says:

    Hey Paulie – what is this Relative Strength Anaylsis you mention? Thought we were buddies? Or are you saving that for later?



    • FXTraderPaul Says:

      Hey Sandy, I’ve always done a form of relative strength analysis on the currencies in the morning but have recently been able to make it a bit more formal. Will discuss when we next meet.



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