Took a fortune out of currency over last 7 days. I am still currently long short on both of these trades.
I understand the USDJPY was a lot more complicated than the EURUSD trade in this long short scenario.
Long and short in 2 identical scenarios in terms on entry. One of best long short trades i've had to date. Looking forward to doing further reading and improving this method
Thanks Tom
Comments
denovo
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Congrats on these two trades! Just be careful about getting too cocky - we all know how the market likes to take it all back...
TomProTrader
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Ah, I don't think i'm cocky at all. I just wanted to show the power of candlestick signals to traders, who hopefully take on the strategy, or better, learn something new from all my trading ideas.
Tom
denovo
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Why did you not take the engulfing candle on 2/6 on the EUR/USD? Does the engulfed candle have to have a much smaller body to consider it a valid signal? Or did you want the MA slope to be in more of a downtrend as a filter?
TomProTrader
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At that area, it was very junky, we had direct buying and selling conflict there, and it was obvious a correction was going to take place. The engulf taken further along wiped out the range of trading for the last week easily, as well showed the 20EMA was clearly resistance, and the 3 EMA and 8EMA broke cleanly and nicely. Thats why this engulf was taken in this case.
I knew if there was a retest and stall at the 20EMA then i was in a good probability position.
The USDJPY we was seeing lots of reversal candles such. Most notably the massive inverted hammer 24.02.2015, I was happy to buy after this providing 2 things.
1. Trading didn't go below the 20EMA by any amount.
2.Trading the day after my bullish engulfing didnt trade half way below the confirming signal.
It was actually technically possible to buy on the 6.03.2015, as that was the range breakout candle at the time.
I hope I answered your questions in as much detail as possible,
Tom
denovo
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Yup, got it. Thanks!
TomProTrader
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No problem, love to help. If you have any other questions on other ideas don't hesitate to ask :)