Euro US Dollar Trade Entered on September 5, 2008

Euro US Dollar Trade Entered on September 5, 2008

Published by Simit Patel
09-09-2008

Posts: 616

InformedPoints: 43

Hi friends, my name is Simit Patel. In addition to being a contributing blogger here at InformedTrades, I also trade currency -- primarily the AUDUSD and USDJPY. I'll be blogging about market analysis and macroeconomics, with a focus on the US economy.

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The comments I make are not intended to be investment advice. As such, I assume no liability for investment decisions based on comments I make.

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Euro US Dollar Trade Entered on September 5, 2008

I wanted to post the charts that led to me to place my most recent trade on September 5, which I am still in.

Below is a weekly chart I used to help identify a strong support level. The area highlighted is a 38.2 Fibonacci level.

I look to the daily chart to confirm that support level, and to wait for the moving averages to align downward as confirmation that the market is trending downward.

I enter on a break of support at 4321. One thing I forgot to include in the chart is the RSI indicator, which I used to check if there was RSI divergence on the break of support. There was no divergence, so I entered.

I'll exit portions of the position once the market begins to retrace and the moving averages begin to reverse.

Thoughts? Comments?

#1 (permalink)

By Jerry

InformedPoints: 250

on 12-26-2008, 03:34 PM

eur/ usd trade...

Hello Simit,

I understand this trade was way back in September....but while strolling thru the site...I noticed you are useing 4 moving averages...but I can quite read which ones they are.....can you let me/us know which moving averages you are useing and are they simple or exponetial..>?????...thanks Jerry

#2 (permalink)

By Simit Patel

InformedPoints: 43

on 12-27-2008, 09:14 AM

hey Jerry,

in that chart, i used the 10, 20, 50, and 100 EMA. however, in light of recent market volatility, i'm using 5, 10, 20, and 50 -- i've found the 100 to be too slow and kinda irrelevant in these market conditions, at least for my trading style.

#3 (permalink)

By Jerry

InformedPoints: 250

on 12-28-2008, 07:27 PM

moving averages

yes...very good....thanks.....Jerry

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