Trade Update
Hello again guys.
As I mentioned today there were two scenarios. The first was that the price bounces of the 50 E-MA on the 30 Min Chart and comes back down to test 1.3131 Support.
I guess the small move, which I caught at 1.3145 was just a little breather and a last attempt by the bulls to take back charge before the bears get back to their inevitable test of 1.3131.
Either way from 3145 to 3171 was a 26 move. When RSI broke above 50 and the price broke 50 E-MA, I moved to a higher time frame H1, to gauge if RSI was going to break 50 on H1.
A confirmation of this would have been reassurance to stay in the trade, but RSI had no luck breaking above 50 on H1, rather the price was handled by E-MA 20 (Green) on H1, ending up with a shooting start (bearish). After I saw that, I moved back to M30 and closed my position when the price came back down at .3165 for a 20-pip profit (ENTRY 1.3145).
I SQUARED at 3165 with twice as many lots as I Entered the trade so I could go short immediately at the same price 1.3165 as I determined a fall back down to try and retest 1.3131.
Now, I don�t want you to get confused, the system works, but I am used to it so in a lot of cases I know when to enter the trade before the signals show up. The more you use it the better you will get at being able to predict a 5/10 Crossover before it happens. You will also notice that I�ve implemented Support Lines (1.3131), Candlestick Patterns, Multiple time frames and simple logic to get bet results.
Try and educate yourself in different areas, so you can see more every time you look at the chart. It is crucial if you want to trade better.
Now I am just going to sit back with my short from 1.3165 and hope for a retest and break of 1.3131 Support, also watching the System Indicators and MA, RSI, Stochastic hints.
UPDATE:
As you can see guys, the retest of 1.3131 definitely happened and Scenario 1 was confirmed. All in all with trade 1 and 2 today we�ve manage to bag about 90 pips, which isn�t too bad for a few hours you might agree, no?
I know I entered a little earlier on the first charts above, so I posted another set of charts which shows WHERE you should have entered using my system, either way you would have still made about 50 pips today if you went only with the second trade (Short) and well above 50,60,70,80,90 if you shorted where I did around 1.3165 on the first set of charts.
I would like to take the opportunity here as well to emphasize on the importance of multiple time frames when using a system like this. When both a fast and slow time frame confirm crossovers - it is an all go situation so try and gauge things on a multiple level in order to better determine a more accurate course of action, whether it be
Entry, exits, position addition etc.
Regards,
E. Lang