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Tag Archives: USD
How to use FX futures to narrow down which forex pair to trade
A problem I have is that once a currency pair shows a viable trading setup, other related pairs often show the same setup too. A reason for this phenomenon is that markets don’t operate in a vacuum. When markets really move, everything move together. So the highly correlated markets can scream for entry at the [...]
Paper trade: Long USD/CHF @ 1.0122, SL 1.0060, TP 1.0225
Seeing that this is my first commitment after the big drawdown, I’ll bring back my tradition of writing a post to log my rationale and market conditions on this entry for later review. I sifted through the weekly charts of all pairs on my watch-list tonight and found that USD/CHF long is the most promising. [...]
Paper trade: Long USD/CHF @ 1.009, out 1.0245 (+155 pips)
The U.S. dollar finally picked up some strength last Thursday and I loaded to ride the trend. One of the earliest trade I made in this wave is going long on USD/CHF. Figure 1 is taken today after a full week since the initial move in USD. The vertical line marks the day when I [...]
Posted in Major Pairs, Self Assessment Also tagged CHF, entry, exit, good trade, long, paper trade Leave a comment
Paper trade: Short NZD/USD @ 0.7520, out 0.7308 (+212 pips)
This was definitely one of my better executed trades recently. Here’s my logic for the entry and exit. As shown in Fig. 1, at the time of entry (marked by the faint vertical line on 10/23), NZD/USD made a negative divergence with a higher price and lower RSI. There has been a series of false [...]
An undisciplined trade: Shorted EUR/USD @ 1.499, stopped 1.505 (-62 pips)
I started to doubt this move mere minutes after placing it, which rarely happens. And not because of the price action. It was solely for my reasoning for this trade. On a quick mental review of this entry, I noticed that they sounded more like excuses than reasons. First sign of it was that I [...]
Posted in Major Pairs, Self Assessment Also tagged bad trade, entry, EUR, exit, paper trade, short Leave a comment
Paper trade: Short GBP/USD 50% @ 1.634, Out 1.645 (-110 pips)
Well, that descending trendline didn’t last long for GBP/USD. I shorted it when it was testing it and saw that the RSI was at a prior high too (Fig. 1). I placed my order just below the short-term ascending support to hope for a break to the downside, see Fig. 2. GBP/USD consolidated around that [...]
Paper trade: Long USD/CAD 25% @ 1.02988, stop 1.02080
This log is written about 18 hours after the entry. I entered long USD/CAD at the market last night for a 1/4 position size. USD/CAD took a brief run up of about 100 pips. Naturally, I moved the stop to just above breakeven to make this a risk-free trade for over the weekend. I entered [...]
My name is Paul and I am a full-time engineer, part-time trader. Back in 2000, I deposited my $5000 interest-free student loan with an online broker. Since then, my interest in trading has become an obsession.
EUR/USD +95 pips in 2 hours: An example of swing and day trade convergence