I mentioned in Friday’s chat room that I was going short the EUR into the close as a faith-based trade, hoping the Dipper would salvage any losses from a pre-Monday surge. Friday’s close was 1.3777 and I was able to short 2 lots at an average of 1.3750, close enough for government work, as they say.
My technical indicators were all screaming for a pullback, and with the European terrorist threat on alert short seemed like the only direction possible (famous last words) and I put my stop loss at 1.3810, 30 pips above my last entry.Suspecting that 1.3800 was going to be a strong psychological resistance level, I didn’t want to get stopped out just for whimsy’s sake. That turned out to be a good decision as I avoided being stopped out by 5 pips the first hour of Sunday’s Asian session.
I also put in a limit buy at 1.3670 (based on the bar close) but didn’t get filled on that by 3 pips dead on 5:00 am. I closed the trade manually at 8:00 at 1.37084 for a net gain of 133 pips (2 lots). The 3:00 Dipper once again came through with a 40 pip return, being closed by the 15 pip trailing stop at 5:10.
Going forward over the next week or so I’m going to focus more on using the various currency ETFs to mimic FX dynamics. The Prophet’s Illustrious Grand Potentate has gently reminded me that this site is ETF Prophet, not FX Prophet and I will endeavor to impart my trading insights in that direction, hopefully making my tactical approach relevant to non-FX traders.
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