Thursday, May 28 Update

Yesterday, I manually closed 2 of my positions for a +25 pip profit. That’s the “good” news.

The bad news is that after a short retracement upwards, I watched helplessly (sob!) as prices tumbled all the way down to my profit target:

Such is the life of a Forex trader… sometimes you have no choice but to sit and watch as the price eventually moves in your direction. However, I would still consider this a good trade because I exited the trade immediately when prices threatened to move up shortly after entry – and move up, it did. Prices continued to spike up (you can see the weird-looking doji in the chart above), and would have stopped out both positions if I had not exited them earlier.

It just irks me to no end that I missed out on such a nice down move. Ah well, there’s a better trade just around the corner.

As you can see from the chart, prices have settled nicely on the 50% fibonacci level (from 20 May low – 22 May high), as well as the 38.2% fibonacci level (from 18 May low – 22 May high). This is an area of strong support, so I wouldn’t be surprised if I see prices bouncing up from here.

GMT 05:00 – Prices have bounced off the 1.3800 level. It might go up as high as 1.3900, but I’d prefer to stay out for now. The 4 hour and 1 hour chart both show a downtrend, so I’ll probably wait for prices to move up more, and wait for a sell signal later.

GMT 13:00 - Price has indeed been bouncing off the 1.3900 level (1 pip less). I’ll wait to see if it breaks this level and then look for a place to go short.