Default MACD has crossed downwards. 6MA has also crossed below 23MA. Stochastic has crossed downwards as well. Stochastic on the 4 hourly chart indicated the same direction. No resistance or support within 20 pips of price. Stock market has yet to open. Entered trade within 15 pips of 6MA.
Profit taking: Intend to manually close the trade if it fails to breakout below 129.96, which was the low for last Friday.
Details of trade:
| Date & Time of Entry (GMT): | 13/12/09 11:50pm |
| Entry Price: | 130.41 |
| Critical Level: | PWP |
| Initial Stop Loss: | 130.91 (50 pips) |
| Basis of Stop Loss: | One pip above nearest Resistance Level (was in Daily Chart) |
| Initial Target Profit: | 129.62 (79 pips) |
| Basis of Initial Target Profit: | Nearest support level (S1) |
| No. of contracts traded | 1 mini |
| Planned Risk-Reward Ratio: | 1:1.5 |
As the price went southwards, I shifted my stop loss three times:
1) After with a paper gain of 50 pips, I moved the stop loss to the entry price and I shifted the profit taking to the next lower support at 128.98
2) Stop loss was shifted to 130.12 which was 50 pips away from S1 after price broke below S1 and I was sitting on more than 50 pips paper gain. Protected 29 pips.
3) Further shifted the stop to 129.96 (last Friday’s low) as the price went down. Protected 45 pips.
Sadly, the pair rebounded strongly that it hit my stop loss. Ended up with a 45 pips profit. I did not expect the price to hit my stop loss so soon. Thought it would have tested S2 before rebounding. This just goes to show profit protection is important as well. I am thankful that I shifted my stop loss accordingly.
Trade exit details:
| Exit Price: | 129.96 (45 pips) |
| Exit Time (GMT): | 14/12/09 4:21am |
| Reason for Exiting the Trade: | Stop loss triggered |
| Profit / Loss (Pips): | 45 pips |
| Actual Risk-Reward Ratio: | 1:1 |
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