SniperForexTrader

Hello,

Since the January 10, the euro is moving in a range between 1.4454 and 1.4507. It is interesting to note that there were two support / resitance interesting that could be exploited in the case of a trade on the rise.

The first is 1.4554, the  most significant one . We found another at 1.4489. This last one I used to open a trade.

Moreover, to 1.4454, a divergence began to form in 15 minutes but that was not very visible on the graph (you have to spend 5 minutes to actually see it). Conclusion, I missed my entrance and I preferred to wait for confirmation of the rising trend in 15 minutes.

I took my trade just above the support level of 1.44891 relying on the divergence of MACD, the intermediate support and EMA.

In terms of candelsticks, we had a configuration of a double bottom formed by two bearish engulfing patterns.

The goal was to reach 1.4541, which is a significant resistance is 47 + pips.

On the news, I waited until the ‘U.S. trade balance’ report have passed. So, it “could be” quiet on the impact of the news on the market and a possible abrupt reversal.

Objective :
entry : 1,4541
take profit : 1,4541 (+47 pips)
Stop loss : 1,4521 (- 20 pips)
Date : 13 january 2010

Chart : 15 mn

Regards,
Loïc Richard

For the trade of 16-17 December 2009 I have followed the trend, for the 20-21 December 2009, I took the trend to contrario.
This is not recommended to follow this procedure but sometimes the events permit.

I realized an entry on the market at the level of support drawn on the chart to 1.43115 (yellow line), the target was a bit ambitious but feasible given the information at my disposal: 1.44000 is the goal (87 pips) just above the resistence.

The elements that led me to this decision:

- There were several divergences which were formed in 1h, 4h, 8h
- There was no major fundamental news that could impacted the market
- An upward trend seemed to be emerging and interesting to use

The elements I have overlooked, or minor:

- Resistence to 1.43573 was formed (about 50 pips) I thought minor given the various divergences that I found.
- A trade in the night did not allow me to see if there is a reversal (there are avantages and disavantages also !)
- A new support was formed overnight at 1.42786, which in my opinion was just a small drift of the course.

Conclusion:

- I lost this trade (11 pips) because the minor resistence 1.43573 is proved stronger than I expected.
- Trader a contrario require to have goals somewhat less ambitious and merely a projection on a minor resistence seems a good option rather than ambitious option.

Hello,

Today, I want to share you a strategie between a resistence and a support.

Thursday night, I have been an opportunity to realize a trade. I take a position at 1.43768 just below the resistance at the middle of red line and I put my stop at 1.44165, just above of the resistence. At this moment, there is also a divergence began in H1 and I wanted take this opportunity.

I agree that this trade is not perfect because the real entry must be near the resistence but this risk was acceptable to take and the objective was 1.4311 (65 pips) also. I could lose this trade because the price has rebounded and stabilized for a short period, until the divergence take shape. But when we take a decision, it is sometimes not easy to see the future, especially when you sleep

In summary my decision :

- The price action of the week was down
- There is a divergence beginning
- The price was near the resistence
- the risk to take was acceptable (in function of my capital)

Regards,
Loïc