Tuesday 29th May

by 21:51 0 comments
As I mentioned in my previous post today, I took a short position on Eddie this morning. With my flat week last week it was good to take a trade and make sure I didn't freak out and kept my nerve. So in reading the last sentence, some of you might be thinking "wow, nice move on EU today, he must've made a killing." Well, not exactly.

First we have the 15min chart, I could have a lot more fibs on this chart, but i've kept it simple and relevant to the ones I was watching during the trade. The green oval shows some more high volume bars that could've been fibbed - i'll definitely be using these tomorrow. 

EUR/USD 15min

So I have four orange fibs on the chart, from left to right;
  • Friday's highest volume
  • Monday's highest volume
  • Monday's second highest volume, important as it's a wide range bar
  • This morning's highest volume - the highest of today when I took the trade
Just before this morning's high volume we pushed up into the low/high combination of yesterday's two high volume areas. There was bound to be some reaction here. We got it in the form of a widespread down, rejecting this area. It's important to note that it's high volume on a down bar so it is potential buying, stress on the potential part. This buying wasn't confirmed with the next three bars down. It was in here that I took my 5min short entry from the low of this morning's fib. 

EUR/USD 5min

This chart is a little messier, well, to the untrained eye anyway! I entered on the tiny spread / really low volume ND bar into the low of this morning's 15min area. I got whipped around a little but no where near my stop which was above the high point on the chart. The two thick white lines represent my entry price (2550) and the target for 1:1 on the first half (2524). 2524 also doubles as a really stubborn support area that price bounced along three or four times throughout the day. The two penetrations stopping on another fib area - the 50% from last Friday.

Anyway, It hit 1:1 on the first half of the trade and as per my strategy, moved the second half of the trade to BE+1, this unfortunately got hit before the big drive down in the evening. I don't really see any other entry that I would have taken to get in again. So it's just one of those things unfortunately. A little bitter sweet, knowing I made profit is great, knowing it could've been more irks me a little. But then again if I could make 1% every day I wouldn't be complaining!

I mentioned above that I got whipped around a little after my entry. I have a notebook that I started in the middle of March for writing in my emotions and feelings whilst in a trade. Here's something I scribbled down while I was feeling a little nervy during that phase of the trade;



28. Forex. Trading. Music. Beer. Food. Travel.


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