Last night was pretty exciting. I had to force myself to calm down. I had what I thought was a pretty solid upper barrier. It was right around the days high. I got onto the computer around 7pm and watched as the EUR/USD was just bouncing around a lower barrier I set. I actually adjusted my low barrier based on that movement. I then watched as things started to rise. I resisted the urge to get into a buy trade at that time because I fear getting into a position heading back to the days high. I still wasn’t sure if the drop had finished. It turns out that upward movement shot right up to the upper barrier. Here is where things got fun! I was convinced a new high would not be set at this time of the day. So, I got into a sell trade right at my upper barrier at about 7:49pm. I then watched in horror as the strong (violently strong!) rise kept going. It shot right through my barrier and looked like it was heading straight for my stop loss. Sure enough it topped out just below my stop loss and then dropped. Things kept dropping and my take profit level was hit at 8:01pm. Below is the chart so you can see what I saw.

Trade Summary:

Sell EUR/USD - 1.4794
Close Trade - 1.4789
Pips = 5

Tags: Forex & Money, forex day trade, trade

This entry was posted on Wednesday, August 20th, 2008 at 7:36 am and is filed under Forex & Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.