TO BUY
GBP/USD to buy, (if the price breaks the stop loss then to sell)
The entry price is 1.5960, Stop loss is 135800, 1st profit target is 1.36130, 2nd profit target is 1.36250.
We have 3 trading plans.
1. Wait for the price to reach the entry price and do a buy order. If the price keeps going down to the stop loss, see if the price breaks the Stop loss effectively. If so, close all the buy orders. If not, open a new buy order and wait for the price to climb up to the 1st profit target or 2nd profit target or a higher price level to close the buy orders.
2. If the price goes up to the 1st profit target before reaching the entry price, open a sell order. If the price keeps going up to the 2nd profit target, see if the price breaks the 2nd profit target effectively. If so, close all the sell orders. If not, open a new sell order and wait for the price to go down to the entry price level to close the sell orders.
3 (if the price breaks the stop loss then to sell)
If the price goes down and breaks the stop loss effectively, close all the buy orders and open a sell order. The Stop loss for this sell order is the entry price level and the profit target for this sell order is 1-2 times the gap between the stop loss and the entry price from the stop loss downwards.
GBP/USD to buy, (if the price breaks the stop loss then to sell)
The entry price is 1.5960, Stop loss is 135800, 1st profit target is 1.36130, 2nd profit target is 1.36250.
We have 3 trading plans.
1. Wait for the price to reach the entry price and do a buy order. If the price keeps going down to the stop loss, see if the price breaks the Stop loss effectively. If so, close all the buy orders. If not, open a new buy order and wait for the price to climb up to the 1st profit target or 2nd profit target or a higher price level to close the buy orders.
2. If the price goes up to the 1st profit target before reaching the entry price, open a sell order. If the price keeps going up to the 2nd profit target, see if the price breaks the 2nd profit target effectively. If so, close all the sell orders. If not, open a new sell order and wait for the price to go down to the entry price level to close the sell orders.
3 (if the price breaks the stop loss then to sell)
If the price goes down and breaks the stop loss effectively, close all the buy orders and open a sell order. The Stop loss for this sell order is the entry price level and the profit target for this sell order is 1-2 times the gap between the stop loss and the entry price from the stop loss downwards.
Trade closed: target reached:
Strategy 2 reached with last night's price movement:
18:00 pm: Price raised near 1.36130, triggering sell action
18:50 pm: Price dropping to 1.5960, triggering buy action
Taking a total profit of 17 pips
18:00 pm: Price raised near 1.36130, triggering sell action
18:50 pm: Price dropping to 1.5960, triggering buy action
Taking a total profit of 17 pips