Simple Forex System Trading

The pair seemed to be stuck in between 0.8820 and 0.8780.  I decided to close it and changed the take profit to 0.8795.  The position was closed yesterday.  Made 5 pips minus some interest expense.

Short this pair at 0.8800 during the London session.  The stop loss was set at 0.8850, and take profit at 0.8750.  During the late NY session, the U.S. Dollar dropped sharply and this pair went up to 0.8840 before it retreated.  It’s been around 0.8820 since.  I think I’ll leave the stop loss and take profit unchanged for now.  See what happens tomorrow.  Friday is always interesting and unpredictable.

Closed the trade this morning because I didn’t want to leave the position opened over the weekend.  The stop loss was almost hit during the London session.  The high came at 0.86548, less than 2/10 of a pip shy from the stop loss, 0.8655.  I use Oanda though.  Results can be different by brokers.

Trade was closed this morning at the entry point, 0.8605.  Pretty much breakeven except for a few dollars of interest payment.

The short position was opened yesterday at 0.8605, with take profit and stop loss at 0.8555 and 0.8655.  Over night, the price dropped as low as 0.8578 before it reversed.  Currently, it is at 0.8615 level.  Still waiting.  The divergence still looks fine.

Finally.  The take profit target was hit.  It was a long wait, but it happened at last. 

Previously

The divergence existed for quite some time in this pair yesterday.  I finally shorted at 0.8645.  Stop loss was set at 0.8695, and take profit at 0.8595. 

Update

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

Previously about this trade

Somehow, I allowed myself to hold this position over the weekend.  What a risky thing to do.  The long position was opened at 0.8550, profit target at 0.8600, and stop loss at 0.8450.  As of the Friday close, the price stood at 0.8517.  However, on Friday, the price went as low as 0.8480.

Market is about to open soon.  We shall see what happens.  I still may move the take profit target from 0.8600 to somewhere at break even or near break even.

Previously about this trade