Wednesday, September 9, 2009

Small trade in gbp/usd pair

After gbp/usd news time without big impact market started to slowly move up. So I figured maybe it's time for bounce because gbp was heavily sold all morning, it was especially weak in eur/gbp pair. That is more swing trading or position trading idea, but I use them very well for beginning of that move if there is any to take a scalp. Maybe it's just construction of my mind, but anyway what isn't. So I took scalp profit and got out when it approached middle of bollinger band and yesterdays support low that was taken out today, marked with blue trend line on 5min chart.
+11 pips, 0.9R, 0.75%



Not only was that the middle of the bollinger band, but did you notice it was also touching a bearish trendline on the 5-min as well. Where was you stop located?

Solfest said...

Good to see you back FX. Keep up the good work.

FX said...

Thanks Sol!!

I didn't pay attention to that trendline at that time, I was more aware of previous support marked with blue horizontal trendline. My stop was at 460, 12 pips away.