Thursday, January 21, 2016

Forex Trade Example - 21 Jan 16

EUR / USD pairing sees a sharp downward reversal on the 5 min chart. 15min chart shows a continuous downtrend since previous day. Enter trade after confirmation of downward reversal, ie. lower low, and lower high. Maximize profits and reduce spreading cost by taking position after a green bar. Reduce risk by exiting market within 15mins. Profit of 3.2 pips

Downward Reversal on 5 min chart
Downtrend on 15 min chart
Significant drop in EUR/USD after closure of trade

Verdict
Quick trade, small and sure profit. Correct identification of long term trend and short term reversal. EUR/USD pairing dropped even more significantly thereafter due to Draghi's press conference.

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