I had 2 trades this morning, both on EURJPY – 1 Long (yes long) and 1 Short (along with the rest of you I guess). My Stops didn’t really get tested, so neither did my strength for staying in the trade….I am sure I will be tested very soon.
Let me explain the Long position on EURJPY after it dropped 300pips yesterday……..My momentum strategy is just that, momentum and can be taken regardless of the Daily trend. The longest timeframe I keep an eye on is whether price is above or below the 1m 200ema – so that’s a 3.5hrs worth of last prices. BUT I do filter on the 5min and 15min charts to check that I could have buyers or sellers on my side from these timeframes. One reason why I have superimposed the 5min MACD onto the 1min chart – it means that I can gauge the 5min Intraday market whilst looking for my entries on the 1min timeframe. Anyway, some significant resistance has been busted on the EURJPY so I took a position Long – who knows where the retrace will take us ? I took +10 pips from that trade.
The more conventional trade was the Short trade on the same pair 90mins later. The position moved so fast I didn’t have a chance to move my Limit order, so I was taken out for +24 pips and 1%.
Off to the Gym now; I feel a little sluggish as didn’t work out on Monday as it was a public Holiday here in the UK and maybe enjoy a little of the sunshine we have here at the moment.