This week ended up with a net gain of 20 pips. I had 2 straight losses, then 3 stright wins for a total of 5 trades. I did not trade on Tuesday as I was feeling a bit under the weather. (Stress I believe it is called.)
Trade 1) Short off resistance. Loss 20 pips
Trade 2) Short off resistance. At this time NZ's unemployement figures came out better than expected and caused a massive spike, then subsequent drop in price. The spike unfortunately took me out. Loss 20 pips
Trade 3) Long off support. There had been 3 consecutive failed attempts at breaking this support. At this point this trade was with the trend long term, but against the current short term trend that was developing so was extremely risky, for want of a better term. However there was a decent retrace up so was a win of 20 pips. This trade would not have made 3:1
Trade 4) Short off resistance. The prior retrace ran out of steam at this resistance and formed a shooting star which I had entered mid way through. The star actually broke through the resistance I was shorting of, but stopped right on the next resistance which my stop was above. From here it was all downhill forthe NZD. 20 pip gain. This trade would have made a 3:1 ratio trade.
Trade 5) Short off resistance. The price was now in a strong down move and had just broken and closed under support turning it into resistance. The strong down move continued. Win 20 pips. This trade would have made a 3:1 ratio trade.
It is becoming clear to me that even a simple method such as this is quite powerful. I have traded it for three weeks, not worried about trends, and come out at break even. I try and do the same with a more complex system and I can lose 5 % in a week. There is 1 more week remaining of entering on resistance and support with no other analysis invloved before I will look at going for 2:1 ratio trades.
Leave A Comment
Please sign in to comment.