USD/CAD - Update

This is an update from the trade i mentioned in the last.

I'm glad i bought half-stake at 30 pips ...

I had to go out and decided to move my SL to 0.9923. "Pips in" but not as many as i'd have liked.

Perfect setup on cable (gbpusd) ... Pips in!

Today was a dangerous day to trade cable because of all the main news coming out (i.e. Manufacturing Production and Official Bank Rate) so i used 1/3 of my normal stake.

Before - click to enlarge

I marked on chart my entry point and stop loss.

Purple ema (20) is below the red ema (80). CCI and Stochastic are moving in unison from their highest levels toward their respectively lowest levels. 

After - click to enlarge

Some time later and this is the result.

My target profit was at W-S1 (weekly support 1) but as you can see i could've made more pips all the way to D-S2 (daily pivot support 2).

I'm happy with this being my only trade of the day with  47 pips of profit.

Topping it up with cable (gbpusd) ...

    Trading is like playing football or racing cars or telling jokes. It's a performance. You have good days and bad days and what happens in your life will, unfortunately, affect your decisions. Let's just say that i didn't get much rest on the weekend.

     Before getting it wrong earlier on with Euro, i placed an order on cable to go short, as i thought it needed a correction before moving higher again. My theory was based on Fibonacci, so i knew exactly where i wanted the price to go before i could go long again. I usually look at the 50% and 61.8% levels as possible reversals , so when placing my order at 1.6247 i was expecting a TP around the 50% level.

Fibonacci on the 1h chart

 I must confess that my heart sank when i saw cable shoot up through DP almost 60 pips without taking me with him...

Entry, SL and TP on 15min

 I also feel obliged to admit that i had forgotten my order on cable placed at 7:40am (GMT) when it was triggered in the afternoon.

The good thing is that my TP was eventually reached. 

When price reached D-S1 i bought back half-stake, set SL to BE and let the rest run.

Aussie saving the day.

After jumping the gun on Euro earlier in the day, and knowing how Aussie and Euro are related, i decided to place a long order on Aussie.

Before

My entry is justified by higher highs and higher lows and a consolidation around the daily pivot, when the 20 ema (purple) was flirting with the 80 ema (red) not knowing exactly where to go.

I knew, or hoped, that i priced broke the weekly pivot, it could reach D-R1. 

After

TP reached at D-R1 and trade closed to a profit of  32 pips.

Jumping the gun on Euro ...

      I woke up today and sat in front of my computer 15 min before this screen cap was taken:

 CCI had touched the -100 and more often than not this is enough to justify an entry, even though stoch didn't quite get there.

You can see on the pic to the left where i place my entry order, SL and TP.

Moments later, this happened:

This is a much more valid entry point than the first one. Now both CCI and Stoch are moving from their lowest levels toward their highest. 

I believe i also misplaced my SL in the first entry to make it look better in terms of risk ratio. 

Needless to say that i got stopped out for a loss, but had i placed my SL below the previous low or had i waited for a confirmation from stochastic, i'd have been 30+ pips up now. At this moment i'd probably sell half-stake and move SL to BE.

"Before and After" 15min USD/CAD trade + SLIPPAGE - 28/02

Another post from the series BEFORE and AFTER.

This is a 15min chart of USD/CAD of this morning. 

BEFORE - click to enlarge

There are notes on the picture, but it's same basic principle.

1º) Purple ema (20) is below the Red ema (80)

2º) The pair is in a downtrend, as it presents lower lows and lower highs.

3º) CCI is above 100 but starting to move down.

      Stoch is above (or touching) 80 but starting to move down.

Entry: 0.9768

SL: 0.9793 just above D-P (daily pivot)

TP: 0.9729 at D-S2 (daily pivot second support)

This is the "after" chart with TP reached.

AFTER - click to enlarge

USDCAD is still moving down as i write and has reached W-S1 (weekly pivot first support) but i'm out.

SLIPPAGE

I admit i never took slippage too seriously. I know it happens and i know how it can affect a trader, but perhaps i should take the slippage factor into consideration when choosing a broker. Even though my entry was at 0.9768, the order was only kicked in at 0.9757, 11 pips below. 

I found this article that explains slippage. http://www.financial-spread-betting.com/Slippage.html