Simple Forex System Trading

Well, I didn’t.  They all happened when I was sleeping.  But if you caught these, good for you.  These were great profitable trades. 

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

I didn’t take this trade because the divergence appeared right on Friday before the Easter weekend.  I normally don’t like to leave positions opened over the weekend due to the uncertainly.  Who knew?  Euro rallied as soon as markets opened after the Easter weekend.  Had we opened a long position at around 1.3120 with the regular 100 pips take profit at 1.3220, and stop loss at 1.3020, the long position would have brought in a 100-pip profit at around 12:00 GMT today.  Who knew!

The divergence appeared at around 1 AM GMT; however, I did not take any action because of the Easter weekend.  The Asian and European markets appeared to be very slow.

The Awesome Oscillator divergence occurred between 6 GMT and 8 GMT in Euro Dollar and Euro Yen pairs.

I missed both of them because I set the entries too low and the prices were never hit.  For Euro Dollar, after it set the low of 1.3148 between 6 GMT and 7 GMT, I set the buy price at 1.3155 at 7 GMT with 100 pips for take-profit and stop-loss.  The price went as low as 1.3168 and never looked back again.

For Euro Yen, I set the buy order at 131.10 at 8 GMT, but the price went as low as 131.15 and then reversed.