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Old 05-02-2008, 03:22 PM
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Today's entry on the H1-chart

Rather self explanatory but I want to point out a few things that should have alerted you to the fact that the price may break-out to the top:

1. Close of candle @ 04h00 (in other words the time was 05h00 when it closed), overheated CCi-5 and with RSi-2 @ 15%-level. The next 2 candles the RSi-2 continues to drop, BUT the CCi-5 starts to retrace. Now @ 08h00 the situation changes when RSi-2 crosses RSi-4 and we now expect the price to break-out to the top.

Dangerous if we ONLY take the H1 into consideration; we now start looking at an opportunity to enter LONG on the M5. The price falls by a margin larger than a normal stop, before the price races back up and we can enter LONG as soon as it is signalled by our M5 chart and in my case it was @ 09h10 with a price of 1.9758 for 121 pips.

I do not trade the NFP announcements anymore have too many unfilled orders for that), so this concludes my trade analysis for this morning's trade.

Wishing you a restful weekend.
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Last edited by ValeoFX; 05-02-2008 at 03:29 PM. Reason: Improved image
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