A. currency pair and time frame: Eur/Gbp(4hrs)
B. Buying
C. I entered the trade at 0.83224
D. I will cut my losses at 0.82924
E. I will be taking profits at 0.83737(However I will be using a trailing stop profit once it goes beyond 20 pip)
F. Reward-to-risk Ratio:I am risking 2% of my account to gain a lil bit above 3%
G. Risk percentage:2%
H. Indicators used: MACD(12,26,9), Stochastic (10,3,3), EMA(10 and 5)…(My stochastic and MACD give me info about the market being over sold or over bought, my two EMA’s give me info on when the currency p air is about to make a reversal and for this case, its when the 5 EMA crosses the 10 Ema)
I. Trade Rationale:Now this is one trade that is exciting. The EUR/GBP almost touching an ascending trend.Stochastic is oversold and MACD gradually becoming positive from negative.
The first time the currency hit this trend was on the 6th of Jan 2012, the second time was 6th of February 2012, the third time was 16th of Feb…As it approaches the trend line, the pair is showing signs of slowing down
J. Trade Adjustments:Depending on the outcome of this trade, I might hold it until next week. However if the trade yields above my 20 pips expectation I will definately lock 20 pips profit and let it run
