Box technique on eurusd and gbpusd.

Below are two trades from this past week on the pairs mentioned above. Using a technique I have mentioned before a ‘Box’ or ‘Channel’ technique. This is particularly useful for a sideways trending market. As there was a mixed week on the markets, due to the 4th July break in the US, the likely action was probably due to take place on the Thursday and Friday sessions. This was because of news releases on Thursday and Friday.
We see the currency pair bouncing sideways and place a buy stop above (30Pips) and a sell stop below (30 Pips) This 30 pip range is to allow for some movement – but it will hopefully catch a large swing. My stop losses are placed at the current price position. In addition to this we place a trailing stop loss at about 15-20 pips.
Our first trade is not that exciting the EURUSD bounces up through our buy stop and the gets stopped out buy the TSL.
Still, profit is better than loss and we’ll take it!

Our second two trades on Friday are far more interesting for two very different reasons. I place two box trades on the EURUSD and the GBPUSD exactly as described above. This was done the night before the impending news release, as for me it was the middle of the night when the release would happen.


When I awoke I see the EURUSD trade is nowhere to be seen on my terminal. I examine the trade and see it stopped out for a small loss – despite the price action never touching my stops!

This was extremely annoying! Especially as my GBPUSD trade was 140 Pips in profit.
Entry........
Exit.........


So instead of having my two trades in profit by a total of nearly 300 pips, I have a total of around a hundred and twenty. I end the week up around 180 in profit. Some people claim that brokers will go “Stop Hunting”. That is triggering stops before they are reached. I have never experienced it myself, but am now doubly sure I shall be looking for a mix of brokers to handle my trades.

However, considering I traded only two days I'm happy to be handsomly in profit.

That's all for now. Best of luck
Cash
Subscibe to my Newsletter Click Here!
Forex Courses Reviewed

Atom Feed

XML