Good day forex trading koalas.
In the previous review, we noted that the week was a very challenging one. Most of the week resided in the no trading zone. The currency pair frequently spiked and flipped, making trading conditions extremely difficult. While a 30 pip take profit would really help here, care must be taken as the spiky nature of the EUR/USD for the week would have wiped out a 30 pip stop loss easily too.
Only two opportunities were presented and these were 30 pips take profits. A 50 pips take profit would not have been as successful.
With reference to the EUR/USD M15 chart above, the week is once again a challenging one.
In early Monday trading, the currency pair gained bullish momentum. However it was deemed risky as the movement was too quick. After a pause, the EUR/USD resumed it’s upwards climb. However it was spiky and hence did not present an opportunity until late in the day. 30 pips were available for harvest. On Tuesday, a bounce off the 200EMA provided another opportunity for a trade. While the initial momentum was too fast, the subsequent climb was more acceptable. The rest of the week resided in the no trading zone. The currency pair flipped around excessively and threatened to wipe out positions on both sides.
The 200 EMA is holding up well as you can see that it functions as an indicator of support and resistance lines well. Just remember that support and resistance lines are never a single pip and hence the currency pair may extend a little further before heading back.
The 30 pips take profit strategy is giving me a little of mixed results. While the lower take profit value does minimize the exposure to the market due to less time spent waiting for the take profit value to be hit, the corresponding lower value of stop loss results in lesser allowances for negative movements. Consider this as an ongoing research.
For folks just joining us, you can view The Koala System rules here.
As the currency pair is really going through a tough time, it is crucial that you plan your trades well.
Trade safely and i will see you next week.