Entry:
Entry criteria:
1) Default MACD negative
2) Long MACD positive
3) Stochastic crossover upwards
I spotted additional signals that indicated a higher probability of the pair going higher. One indication was that the Dollar Index was rising. Second, there were 3 occurrences of trendline bounce, suggesting a steady uptrend. Third, volatility reduced and price has broken out of a downward trendline.
The stop loss (1.0770) was set one pip below the Weekly pivot and the price objective (1.0830) was based on a resistance on the day chart. Risk reward ratio was 1:2.
Exit:
The movement of the pair was sideways which I believed was due to low volume (US, HK, China and Singapore markets not open). Decided to hold the trade till the next day as they were not much profits to take. I shifted the stop loss to 1.0755 (1 pip below a support on the daily chart).
The following day showed some promise as it broke away from a downward trendline but closed lower at the end of the hour. Things turned worse as Long MACD was negative and the 6-hour MA crossed below 23-hour MA. I decided to hold on for a rebound and risked 15 pips. Stop loss was triggered.
Bought 1 mini of USDCHF at 1.0770 on 15 Feb 10
Sold 1 mini of USDCHF at 1.0755 on 16 feb 10
Loss = -15 pips
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- USDCAD (short) – closed on 8 Dec 09
- GBPUSD (short) – closed on 17 Dec 09
- Venture (long) – closed on 22 Jan 10
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