Simple Forex System Trading

Well, the stop loss was hit.  The position was closed with a -100 pips loss. 

Previously about this trade

Currently the trade is in the red.  At time of writing, it’s 45 pips against us.  I entered the buy order at 0.8550.  However, the price continued to move lower, although the divergence still exists.  The profit target is at 0.8600 and stop loss is at 0.8450.  Depending on how the market is, I will adjust the profit target later since tomorrow is Friday.  Most likely, I’ll be moving the take profit target from 0.8600 to the break even point of 0.8550.  I’d like to close the position before the weekend.

Previously about this trade

Looks like divergence is forming.  Waiting for confirmation.

This is the update from the trade I opened before the Memorial Day weekend.  The euro finally retraced a bit at around 6 AM GMT and the position was closed with a small profit of 20 pips.

Not a good idea to open a position before a major holiday.  The market has been quiet due to the U.S. holiday.  I opened a short position in Euro Dollar on Friday because of the Awesome Oscillator Divergence.  The limit sell was filled at 1.3965.  The original take profit and stop loss were 1.3865 and 1.4065 respectively.  The price of Euro continued to climb throughout the day Friday.  It came as high as 1.4051, just a handful of pips away to take out my position.  On Sunday night, during the Asian session, I adjusted the take profit target to 1.3945 and left the stop loss unchanged.  I just checked the price action.  My new profit target was almost touched, about two pips shy, before the price bounced higher again.

5/26/09:  Update