As seen from some earlier posts, last week was a particularly good week.  I took some different trades to to those already mentioned so I thought I would discuss them, showing my reasons for entry, and exit.  Both trades took place  I’ll discuss took place on Tuesday, 18 May; one was USDJPY and the other was EURUSD.  Both trades were short.

I’ll start with the USDJPY trade.  The Yen has been all over the place in recent weeks, and a lot of people have stayed away from trading it.  However, I saw a pretty good set up and entered the trade on the spike high doji candle.  There had been quite a few spike highs in the preceding hours and so that combined with an overbought stochastic and touches on the Bollinger bands was good enough for me.  The trade went along nicely, and there were two potential exit points. The first occurred after a few hours (trade was 50 pips up at this point).  There was a bullish candle, and whilst it was not a reversal candle, the stochastic was oversold at this stage, and with the Yen behaving as it had been, there was no shame in taking profit here.  However, if you had held the position, you would have bagged another 50 pips, with the exit point being the bullish candle which retraced more than half of the body of the preceding candle.  I however, closed at the first candle, mainly motivated by the profits I had going on the EURUSD trade which was running at the same time.

I got into this trade after the appearance of the dark cloud cover candle circled above.  The Euro had been on a one-way ticket down so although there hadn’t quite been a touch on the Bollinger Bands, the price action was at a resistance level and the stochastics were over bought.  In the next few hours the trade went beautifully, with the price dropping rapidly.  I set my targets on the previous low at 1.2231 (entry at 1.2408) for a profit of 177 pips.  My overall profit for the day was therefore 227 pips.  I stopped trading for the week at that point (I see no reason to give back my profits once I’ve made them), that’s why I am not including an analysis of the trades James reported.