Thursday, May 1, 2014

Forex Trade Example (30 Apr 14)

All trades today were made using 15min charts, as market movement was quite flat on a 5 min chart.

Disclaimer:  This is purely for sharing purpose only, not a trading advice or instruction.


Trade: Using  15 min chart. Buy on uptrend pullback, after spotting upward kicker signal. First buy was high, averaged down on the same bar. Set take profits of 5 pips, which hit on the 4th bar.
Review: Good to spot upward kicker signal to take position at bottom of pullback. Could have waited till the end of bar before taking position, then averaging down will not be needed. Since movement is not large, take profit has to be adjusted accordingly.



Trade: On 15min chart. Spotted hammer Doji after long consolidation. Took long position anticipating strong upward action. Set smaller take profit in case price continues long term downward trend.
Review: Risky trade. Consolidation during long term downtrend might result in strong downward action. Size of Doji too small.



Trade: On 15 min chart. Sell after downtrend pullback and signs of downtrend continuation. Auto take profit at 5 pips.

Review: Good to wait for downward signal before selling, made use of longer term trend. Since movement is large, take profit could be more. But overall a good trade.


Summary
It's a good practice to switch between 5min, 15min, 1hr and 1 day charts to get an idea of the short, medium and long term trends. This will give you more versatility and confidence in your trades.

No comments:

Post a Comment