Tuesday, August 10, 2010

EUR Update: April 28, 2010

PRE FOMC Announcement:

Last night I setup some entry orders and went to bed. My timing of and use of volatility entries in combination of BB analysis worked quite well. Indeed the analysis it confirmed this short term down trend. However, I do question the validity of this down trend as it may become a higher low in the mid to longer term (month to month).

Here is my trade:

Entry was set 1 ATR away from current price. Last night, current price traded and closed out side the 2nd deviation lower BB. 1 ATR coincided with 1st deviation BB resistance. One of my orders was filled and killed, while I managed to get half a standard lot in for the go.

I woke up and I am now currently managing the trade. When waking up I wanted to jump ship on half the gains I currently have... luckily I didn't second guess myself and stuck to the trade. Last night I also had to stop myself from second guessing myself on entering at current price. Instead I stuck to my orginal thesis and I was correct to not enter earlier.

At the moment, I decided its best to maximize the 8 hour time frame indicators within the context of a bearish daily chart short term trend (trade to lower momentum levels)

Lastly for exit I am targeting right about 8 hour short term trend support (timed with 38~ RSI).


What did I learn? Keep your cool, maintain discipline. Currently I'm also updating risk management I tightened stops as I don't expect significant upward volatility to knock me out.

I'm definitely getting comfortable with modest leverage. However, with all these ridiculous financial reforms, I may have to flee America if I want to continue on the retail side. Either that or switch to pure mini futures.

**side note** as im writing markets in Europe are starting to close hence the lessened volatility, hopefully this trend continues through the US close.


Alexander Lệ
Managing Partner LLC
Analyze Capital LLC

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