View Single Post
  #9 (permalink)  
Old 06-13-2008, 01:07 PM
jcvictory jcvictory is offline
Junior Member
 
Join Date: Jun 2008
Posts: 14
Default Rationale for trades

Quote:
Originally Posted by David Waring View Post
Hi JCV,

If you don't mind my asking how did you go about forming these opinions and deciding when to enter the trades?

Best Regards,
Dave
No problem . . . glad to share.

EUR/USD Trade

30 minute chart of the EUR/USD shows market in general downtrend.
15 minute chart shows support at approximately $1.54483
I was looking at the 1 min. chart and there was a large drop at 23:53 to $1.54496. This showed a pronounced long and red candlestick, so I figured this might be a good indication that the support was breaking so I sold 100k at market.
I was also watching the 1 minute MACD and the signal lines had crossed earlier and were continuing down so I figured this was a pretty good breakdown.
I rode it down overnight until my stop was triggered after the market rallied above resistance in the 1.53270 range. You can see it on the one minute chart – there’s a huge green candlestick at 8:08 on 6/13 where my stop was hit.

USD/JPY Trade

30 minute chart of USD/JPY shows the market consolidating from an uptrend. There seems to be some near term support at the 107.630 level.
5 minute chart shows resistance at 107.785 level
1 minute chart shows that at 23:53 the resistance is broken and I buy 100k at market.
1 minute MACD is a bit oversold but I still pulled the trigger.
My position was closed on 6/13 at 8:08 when my stop at near term support at 108.265 was hit. You can see the red candle with the long tail on the one minute chart.

Can I get your thoughts on my handling of these trades?

James
Reply With Quote