The Dipper has presented a few whipsaws lately after a 100% reliability record the first week it was introduced. Today the Dipper redeemed itself for all doubters.
If you haven’t acquainted yourself with the Dipper setup you can review the recent archives for full details. Let’s just recap the overnight trade dynamics: Going into the 3:00 trade trigger the linear regression line(8) is green, price is riding above the upper 8/8 hi/lo channel band and the parabolics are on a BUY. The trade entry fires at 1.3020 and several big bar gains immediately ensue before a topping reversal dead on 1.3100. Following our15 pip trailing stop, the trade is closed out at 1.3085, yielding a nice 65 pip net gain in just under 4 hours of exposure. Had we stuck with the set time exit at 8:00 we would have given up 25 pips of gain so the trailing stop continues to help preserve our profits. Later in the day, from 11:00 on for 90 minutes, the EUR traded in a 4 pip range, a uniquely tight consolidation pattern that had breakout traders primed in anticipation.
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