Thursday, August 04, 2005

EUR/USD 8/04/05

2:00 pm- 1 Trade Won

There was a good breakout candle of the EU session's high and I rode it all the way to R1. The lines worked very well for me today as I used them for both my entries and exits. I hope you all were able to catch this nice trade. Nice and easy today. I wish everyday was like this :) Here are the trade details:

- 3 lots at 2364; stop loss= 2335; 1st target 2377
- 2 lots closed at 2377; moved stop loss to 2364
- Last lot closed at 2400 because it did not breakout past this resistance.

Results: +32 +39 -9(spread)= +62 pips













8:00 am- Analysis


I know my analysis is a little late this morning, but I wanted to wait and see if the ECB rate announcement would do anything. And of course it did absolutely nothing! At least not yet. The EU session range is only 49 pips. I am expecting a big breakout during the US session. On the 10 minute chart below, I plotted the EU session's high and low, pivots, support and resistance, and possible targets for the Euro if a breakout occurs. I calculated these targets based on the normal potency of the EUR/USD. These lines should aid you in your trading. Use them for entries and exits. I think we will see some good moves today. I'm not sure if I will be able to trade, but then again I always seem to find time to look at the charts :) Happy trading everyone!

7 comments:

Feeaga said...

I hate when there is such a wide range between daily pivot points. Have you ever tried plotting weekly pivot points in such occasions?

Big Pippin said...

I don't really mind if there is a large range, because then I use them as targets rather than entries. Today, for example, I will use the EU session high/low as my entries (along with FX10) and the other lines, whether it be my target or a pivot, will be my targets. I don't plot weekly pivots. I might look at it though.

okl said...

Good trade today, may i ask your possible target is based on ??

okl said...

"and possible targets for the Euro if a breakout occurs. I calculated these targets based on the normal potency of the EUR/USD. "

how do you define/get/calculate eur/usd normal potency to get your possible targets? :)

Big Pippin said...

I've found that a normal day for the Euro is about 120 pips range, whether it be 120 pips going up, 60 pips going up and 60 pips going down, etc... There are many ways I use the potency method, but in today's example, because the pip range for the EU session was only 49 pips, I take 120-49 to get 71. 71 is approximately how much juice the Euro still has for the US session, whether it be up or down. I then add 71 to the EU session high and subtract 71 from the EU session low. Now I have a gauge as to where the price "could" go if a breakout occurs :)

okl said...

thanks for the answer, from what i read the average daily range was 111 pips for 2004

http://www.refconews.com/main/DollarMarketMovers.pdf

Big Pippin said...

Awesome! Thanks for the link :)


Subscribe to this blog