Thursday, May 30, 2013

Double bottom in gbp/usd made a good trade

I enjoy trading various chart formations and patterns. Yesterday, I was going through the basket of currencies that I follow and saw that gbp/usd made very nice double bottom formation on hourly charts. It made the first point on the 23rd of May (2013) and the second one on the 29th of May (2013). I calculated (according to my rules) and saw that the most logical entry zone for a long was 1.5145 level with a stop loss below the small retracement that you see on the 1 or 4 hour chart. Your stop should have been at 1.5097 level. I also saw that the exit level was around 1.5250 area (following supply and demand levels).

The market went up today and my order was opened. Stop loss is safe and take profit is not reached yet. I hope it will happen in the next thirty minutes. You see I am mostly a day trader and close my trades when New York session ends. So, it is time to get out. It is clear that the news could hit my stop today, but fortunately it did not. This is risky business. Anyway, the trade went well and I am happy about it. Looking forward to tomorrow's fundamental events in Euro and Canadian dollar.