Closed Trade USD/JPY – Stopped Out!

This is a closed trade that was placed on July 22nd, 2010 as part of the live forex trading bootcamp.This trade happened after two successful trades, a 55 pip gain & a 31 pip gain on the EUR/USD.
This trade was placed in a real forex trading account & was posted as it happened. Below you can read the unedited log of this trade to see an example of Forex Surfing in action:

USD/JPY Archive Trade

The New York market is about to open on July 22nd, 2010. After looking at all the currency pairs, only one cool opportunity strikes me this time. The London session a few hours ago created opportunities as soon as I took a break from the screen (it happens – we can’t be there for all of them). So during this session, I’ll only be watching one pair:

USD/JPY

There’s a strong set of patterns for a downtrend for USD/JPY. Looking at the 4-hr chart (notice how the trend went lower than the previous double bottom): And the 1-hr chart confirms it: The 15-min & 5-min charts show a small uptrend. Here’s the 15-min chart: And the 5-min chart:

What To Look For?

Wait for the 5-min uptrend to break and form an umbrella handle going down. Then ride that wave short! You could also wait for the 15-min forex candy cane to reverse. We’ll have to see what the market does.

Trade Entered

I entered this trade early because the opportunity presented itself. Here is the info: currency pair: USD/JPY short timeframe: 15-min I: 86.87 II: 86.32 III: 86.68 entry: 86.68 stop: 86.87 (19 pips risk) limit: 86.13 (55 pips possible gain) reward/risk: 289.47%

Variable Ratcheting

On this trade I’ll try to do some variable ratcheting so you can see how it works. We do this with a 1-minute trend. As soon as we see some type of profit, we take it. Then let it retrace to 38.2% of the movement and sell back in… You’ll see…

Variable Ratchet Set

In this trade a good place to choose to do the first ratchet is the previous low from the last wave at 86.59. This is the first step in the variable ratchet. When that limit is hit, we’ll look at the umbrella handle formed by that movement & use our fibonacci tool to find the 38.2% retracement to re-enter the trade…

Stopped Out

Sometimes the trade doesn’t work out. I got stopped out for a 19 pip loss. It was a good setup, but in hindsight the 5-min chart didn’t fully break the micro-uptrend.

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