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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.
__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.
"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.
Last edited by ValeoFX; 05-02-2008 at 03:29 PM.
Reason: Improved image
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