"Take Risks: If you win, you will be happy; if you lose, you will be wise. Nothing ventured, nothing gained."

Thursday, February 11, 2010

10 Feb, Eur/Usd - The Wonder of Fibonacci

Although i can see myself refraining from early entry, i saved myself a few stop losses before i entered trade. i was stand-bying to go long the eur/usd, but juz before my entry there was a long breakdown candle that saved two mental stop losses i had in the head.

Session: New York, London Crossover
Duration: 4 minutes, 12 minutes
Timeframe: 15M.
Technical: Fibo, Moving Averages.
Fundamental: Nil.
Strategy: Long candle prior to entry. First position closed at breakeven of second position's stop/loss. Letting second position run.

after the momentum of breakdown candle cool-off, i went long. price went with me immediately. after it retraces down i went another (smaller) position in. the profit from my first closed position was enough to cover the second position's stop loss.

unfortunately, price dips, touches exactly at my stop loss and retraces back up all the way to my supposedly t-p. blood almost spill out of my guts.

first green X is my first closed position at profit. second red X hits my stop-loss exactly at fibo and went up. the problem with me not wanting to shift my stop-loss slightly below the fibo 61.8% is that i didnt want the stop/loss to overrun my first position's profit. if only i had stick to my usual mentality! see how nicely it rests at the fibo (similar to previous support) and retraces. fibo is simple, but it works. didn't want to go on again before there was news coming up next on US Trade Balance.

-4 pips.


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