Entry criteria:
1) 6MA below 23MA.
2) Long MACD negative
3) Stochastic crossover
No news within 3 hours, no significant price support/resistance within 20 pips and 4 hour stochastic pointing downwards. Entered trade within 15 pips from 6MA.
This is a countertrend trade. US futures were bullish at entry. Turned slightly bearish thereafter. Critical level was tested but price did not breakout. I was able to draw a supporting trendline which price did not breakout as well. The critical level and trendline forms an ascending triangle. It will be crucial to see which direction the price will breakout which eventually went against my trade.
Guidance from trainer: The candle that you have entered your trade is an inverted bullish hammer and it was followed by another bullish candle. This indicated that price was undergoing a bullish reversal, meaning price was turning from bearish to bullish.
Guess I got to do more study on candlesticks.
Details:
| Currency Pair: | USD/CHF |
| Trade: | Short |
| Method: | Retracement Continuation |
| Global Stock Market: | US Futures bullish |
| Date & Time of Entry (GMT): | 18/12/09 9:05am |
| Entry Price: | 1.0418 |
| Critical Level: | 1.0443 |
| Initial Stop Loss: | 1.0444 (26 pips) |
| Basis of Stop Loss: | Critical Level |
| Initial Target Profit: | 1.0338 (80 pips) |
| Basis of Initial Target Profit: | 61.8% Fibo |
| No. of contracts traded | 1 mini |
| Planned Risk-Reward Ratio: | 1:3 |
| Stop Adjustments: Price and Profits Protected | Nil |
| Exit Price: | 1.0444 |
| Exit Time (GMT): | 18/12/09 1:58pm |
| Reason for Exiting the Trade: | Stop loss triggered |
| Profit / Loss (Pips): | -26 pips |
| Actual Risk-Reward Ratio: | N.A. |
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- USDCAD (short) – closed on 8 Dec 09
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- EURJPY (short) – closed on 13 Dec 09
- Olam (long) – closed on 10 Dec 09
- Recording your trades
- Support and Resistance
- Minimize loss = Position Sizing and Stop Loss Limit
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{ 4 comments… read them below or add one }
hi Alvin,
what time frame is the chart?
hi Alvin,
what time frame is the chart?
This is an hourly chart
This is an hourly chart