June 20, 2008
Weekly Trading Update - June 16-20
Not a bad week this week. I ended up making just 2 trades with 1 winner and 1 loser. However the winning trade more than made up for the losing one.
The winning trade was on the GBP/JPY, a pair I've only started trading recently, but one that has served me very well so far. This was a classic breakout trade. The price had consolidated on the 4 hour chart with the 5, 20 and 50 period EMA's being very close to each other, which usually means a breakout is imminent. Ideally I was looking for an upwards breakout because the daily Supertrend was bullish, and thankfully it did move upwards on Thursday morning.
After a strong surge upwards I used the 1 hour chart for my entry point and entered close to the EMA (5) at 211.97. I then let it run until my target price of 213.00 was achieved, closing the entire position for around 100 points rather than letting half the position run like I normally do.
The second trade, the losing one, was on the EUR/USD pair on Thursday afternoon. I was looking for a downwards move here as per the daily Supertrend, and it looked for all the world that this would happen after the EMA's came close to crossing downwards and my other technical indicators were indicating a downwards move.
However after entering a short position at 1.5510 the price then hardly moved and the tight stop loss that I set just before I went to bed was triggered overnight at 1.5540 so this was a 30 point loss, rather than an expected 60-100 point gain.
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