Wednesday, October 19, 2005

Forex Trading 10/19/05

6:38 pm- 1 Trade Won

And just like I thought, the Euro makes a good breakout! At 11:00 am, the Euro closed 10 pips above the EU session high and I entered 3 lots long at 1982 with a stop at 1962 and a first target at 1995. My target was hit at 11:20 and I closed 2 lots out and moved my stop to the low of that candle which was 1985. I ended up getting stopped out at that level.

Result: +26 +3 -9(spread)= +20 pips

8:00 am- Analysis

Good morning everyone! Sorry for not posting last night. If you happened to watch the market yesterday during the US session you would've seen that there were clearly no trades yesterday. The market stayed flat the whole day. However, the Asian and EU session were a different story last night. We see a big range of about 100 pips during the EU session which is abnormal for the Euro. In fact, the Euro has already moved beyond its 5 day average daily pip range, which means my calculated targets are pretty useless today. I'm not sure how much movement we'll see today because we could see a correction of last night's move or we could just stay flat. There are no major news reports coming out so I'm not sure what to expect. But then again, I never know what to expect. I'm just going to be patient and wait for a good signal. I'd be extra cautious with a breakout because the Euro has already moved so much that a breakout might not necessarily mean its going to make a big move. I'll also have a list of the people that I'm going to invite to the live trading session tomorrow and Friday by this afternoon. Happy trading everyone!

Key Levels:

EU Session High: 1974
EU Session Low: 1874
Calculated Target 1: 1988

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