EUR/USD 18 April 2011 - A miss on this one.
by Eva
(from Forex Trading Beginner)
EUR/USD 15 min chart on entry
Close-up of market gap and candle on entry
Market when I exited
Trading at one of my favorite times - the opening of the Forex market at 4pm Sunday, New York time. This is 7am Monday, Sydney time.
I spied a gap in the opening of the EUR/USD, and a mallet formed on the 15 minute chart, which I took as my signal to get into the market.
The market was moving quickly as I made my trade, so I entered on these initial figures:
Entry: 1.4415
Stop: 1.4400
Limit: 1.4438
This gave me a risk of 15 pips to a potential reward of 13 pips, which was no good to me, as I like to do a 1:1.5 risk:reward ratio on all my trades.
So I moved my stop to 1.4405 so risk went down to 10 pips and the balance of risk was more comfortable for me. This made the trade a little tight, but I figured I was in the market, so may as well stay there and see how it panned out.
And pan, it did. The gap in the market didn't close! Well, it kind-of did, but ot in a way that made me any profit. Lost 10 pips on this trade.
