EUR/USD Moved as forecasted on my site from a month ago

May 23, 2008

A month ago on April 26th, I forecasted the following:

“Over the next few weeks, we will most likely see the EUR/USD swinging between (1.5300-1.5500) to (1.5800-1.5900). “

As you can now see, the EUR/USD moved down to the 1.5300 level on May 8th and is now at the 1.5800 level as of May 23rd. As you can read in my article posted a month ago, I thought the EUR/USD was going to swing a bit more due to the past EUR strength, but sure enough, it made this expected swing.

I’m hoping that this analysis helps others with trades and the analysis of the Foreign Currency Market.

-LattePips

Filed under EUR/USD

Planning, Execution, and Patience

May 7, 2008

Forex trading is not meant to be exciting, although it can be. Forex trading is not meant to be executed whether your trade is negative or extremely positive. Forex trading is planning, execution, and patience. Whatever your forex strategy is…stick with it. Don’t bend the rules. No matter what fundamental reports have come out, no matter what technical analysts are saying, no matter how many of them are saying it…if you have a proven, tested strategy against years of data…FOLLOW IT!

I recently bent the rules on my strategy. I was in a long-term GBP/USD trade for almost 2 months. Per a prior post of mine, I exited a short-term trade to capture profit temporarily. One can capture some nice profit when a short-term trend breaks against a longer-term trend.  That wasn’t bending the rules of my strategy. The problem was that I never entered back into my long-term short trade with the GBP/USD. You’ll also see in a prior post of mine on the GBP/USD that my strategy shows the GBP/USD in a Daily downtrend, 4hr downtrend, 1hr downtrend, and still in a 15min downtrend…but I never re-entered my long-term GBP/USD short trade.

So, all of this to say…if you’ve developed a strategy which is proven over years of data, backtesting, and demo-trading…FOLLOW YOUR STRATEGY!!!

Filed under Uncategorized

Entered long-term USD/JPY short @104.45

May 6, 2008

I’m going to have to get better at posting trades when I enter a trade. =D Anyway, on the same day (April 30th) I exited my long-term GBP/USD trade, I also entered a long-term short trade on the USD/JPY @104.45. As you’ll also read on my USD/JPY page, this is according to a signal I gave on that page at the price of @104.40. Therefore, I am satisfied with my entrance. I do not believe the USD/JPY will move much above this price level. I plan to hold this trade over the next month or two.

Filed under USD/JPY

Exited Long-Term GBP/USD Short Trade for 360 pips

May 6, 2008

Last week on April 30th, I exited my long-term GBP/USD @ 1.9772. I could have exited better, but oh well. During the latter half of April, the lack of movement short on the GBP/USD began making me a bit nervous. I actually exited on a short-term, not long-term exit signal. I wanted to exit and capture profit before it went against me further during the short-term. You’ll notice that when I exited, the GBP/USD went all of the way up to 1.9900. I could have entered short again there at 1.9900, but I have been a little apprehensive about the GBP/USD movement lately. Therefore, my long-term short trade ended out to be the following:

March 6th: entered short trade @ 2.0131

April 30th: exited short trade @1.9772

These longer-term trades usually provide better pippage than this, but at least I don’t have to check this trade every hour/day like shorter-term trades. In the meantime, I’ll be looking for the next entrance.

I want to be sure and make very clear that my system has not issued a long-term reversal signal yet. Therefore, in regard to the long-term, my system still shows the GBP/USD to be in a long-term downtrend. In regard to today, May 6th, my system shows the GBP/USD to be in a Daily downtrend, 4hr downtrend, 1hr downtrend, and 15min downtrend. But again, due to the sideways movement over the past few weeks, I have gotten out for now.

Filed under GBP/USD

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