Hit on AUD/USD 28 March 2011
by Eva
(from Forex Trading Beginner)
Bullish engulfing candlestick pattern on 15-minute chart
This is how the market was positioned when I entered (15 minute chart)
Market when I exited (hourly chart). Looked like a consolidation was happening...
I could have made more profit, as you can see the market swung up after I exited.
The open of the US Dollar each week is one of my favourite times to trade. Sometimes "gaps" appear in the market, which give good opportunities to jump in with fair certainty that the gap in the market will close.
That's what happened for me today, and if I'd been a bit braver I would have hung in there a little longer and made my full 36 pip potential.
As it happened, the market gave me some signals that it was looking to consolidate (at least, that's what my analysis told me!) and I pulled out of the market with 8 pips profit.
8 pips profit... it's better than an 8-pip loss, right?!
Anyway, here's how the trade went:
Entry: 10246 (bullish engulfing candle pattern)
Stop: 10222
Limit: 10292
Risk: 24 pips
Potential Reward: 36 pips
The pictures tell the rest of the story - click on each picture to make it bigger and read the caption underneath...
