CLOSED Trade EUR/USD 15min Forex Surf +20 pips

Here’s an archive of a closed trade from the LIVE 90 day forex trading bootcamp. Below you’ll see the unedited analysis that was given in real time for a 20 pip gain on a forex trading opportunity on the EUR/USD. This trade was originally posted on July 29th, 2010 in the private LIVE forex trading bootcamp member’s area. More current LIVE forex trading opportunities are posted 6 hours daily in the private member’s area.

Trade Archive EUR/USD July 29th, 2010

Here are the trading opportunities to watch for today during the London/New York session.

EUR/USD

The only pair that I’m watching this morning is the EUR/USD. By looking at the recent market snapshot, we can see the EUR/USD moving in a clear uptrend on all timeframes: On the 15-min chart we’ve got a recent extension up, so we just need to wait for a 38.2% retracement, which will happen around 1.3055 (see image below):

Trade Entered

I had actually had two waves in my previous picture. So here’s the info for the trade: Here’s the fibonacci calculator worksheet: Here are the numbers: I: 1.3021 II: 1.3091 III: 1.3065 entry price: 1.3065 stop: 1.3021 (risk = 44 pips) limit: 1.3134 (reward = 69 pips) reward/risk: 156.82% *note I entered a market order and got a price 1 pip lower than what the fibonacci calculator recommended for the trade. It’s only a pip, so I’ll stay in the trade. Here’s the etoro screen showing the settings for this trade:

Channel Ratchet

If you look at the chart price are in a fibonacci channel. A fibonacci channel is the channel formed between the 38.2% retracement and the peak of the wave. Since prices oscillate within the channel, I’ve set a limit order to sell at 1.3085. This isn’t the peak of the channel, but is close. I chose this price because there were a few candles with highs at this point, I basically ignored the extremes and went with the next group of highs. After this limit is hit, I’ll try to buy back into the trade in the lower part of the channel. See the image below:

Ratchet Log

The first ratchet was successful. I grabbed 20 pips in 23 minutes. I immediately set an order to buy at 1.3070 to buy back near the bottom of the channel. Since we’re in a channel, I can be more extreme with the ratchet. I still chose a slightly higher price to buy back than my previous entry price in case prices don’t come to the very bottom of the channel before going back up. I cancelled the order to buy back at 1.3070. Since the price reached a newer high then retraced back down into the channel, I need to watch the 1-min chart more closely. If the 1min downtrend is broken with a candy cane & I can get a price lower than 1.3070, I’ll re-enter this trade. But I have to be careful because of the potential double top just formed. Here’s that I’m looking at on the 1min chart: A few minutes later the trendline was broken, but not at the price where I was willing to re-enter the trade. Here’s the trendline break with a 1min candy cane (have to use imagination, a candy cane can be 2-3 candles on this small timeframe): That’s the end of this trading session. I’ll be happy with my 20 pip profit today!

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