Tuesday, February 1, 2011

Thoughts: 11:10 A.M.

After finding resistance at its 2-month high of 1.3776, the Eur/Usd made a substantial move higher.  I got a clear signal using my aggressive strategy and entered a trade while the Eur/Usd was at 1.3765.  I think the next resistance level will be around 1.3820.  If the Eur/Usd brakes that level, I can see it going to 1.3973 before the month is over.  Just in case, I am running a trailing stop loss of 38 pips.

Now, I didn't get any clear signal in my conservative strategy.  There was a possible signal about 7 hours before the one I got in my aggressive strategy and which would have been incredibly profitable.  However, that was at 5:00 a.m. where I live and I was sleeping.  In any event, I think I can make the conservative strategy more profitable by increasing the trailing stop loss.  Currently, I am setting it pursuant to an ATR(10) on the hourly chart.  I will continue trading on the hourly chart but will now use the ATR(10) on the 4-hour chart to calculate my trailing stop.

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