Forex Trade Example (16 Apr 14)

A continuation of trend trading methodology. It doesn't work smoothly all the time. Patience and correct entry point is key.
Disclaimer:  This is purely for sharing purpose only, not a trading advice or instruction.

Trade: Buy on uptrend pullback after previous high was just broken, and a hammer doji together with a confirmation green bar was seen. Very strong uptrend with a long consolidation, thus held on for about 20 bars before putting break even take profit.

Review: Price jumped 2 bars after take profit to continue trend strongly. But it was too risky to hold for so long. Correct prediction but market did not move fast enough. No capital loss, still a fair trade.

Trade 1

Trade: Buy on uptrend pullback. Took profit at about 8 pips, after 10 bars.

Review: Good trade. Position taken almost at low of pullback. Confidence in holding on for profit, and got out before previous high is hit to minimize risk.

Trade 2

Trade: Continued to buy on uptrend pullback. But trend continuation wasn't strong, seems to be heading towards consolidation phase. Took profit at next temporary upsurge, about 10 pips.

Review: Took a good position at low of pullback. Quick to get out with a profit even though trend continuation is not eminent. Good trade.

Summary

Look out for slight signals like dojis and kicker reversal signals. They might indicate the strength of the trend continuation. The longer the consolidation, the stronger the next up or down move will be.