EUR/USD: Dark Cloud Cover Will Work This Week for the Bears?

Sunday, September 27, 2009

EUR/USD: Dark Cloud Cover Will Work This Week for the Bears?

(Click on the chart to enlarge it)

On Sep 23th we have a very clear Dark Cloud Cover after a false breakout at top 1.4770, pattern confirmed by the next day Set. 24th being a Bearish day.
All oscillators (Stochastics turning down from overbought area, MACD below its signal line and pointing down, RSI below its Moving Average) favour this Candlestick pattern, thus a Bearish move is expected. My strategy is to SELL, specially at break of 1.4651, adding lots at break of 1.4612.
Watch for a possible pullback to resistances 1.4724 and 1.4770.
A break up of the resistances 1.4770 and 1.4802 would negate this Dark Cloud Cover formation, thus triggering a new Bullish move.

TRADING STYLE

Even though we are considered Day-Traders, our trading sometimes requires different styles, according to the patterns and/or how the market moves during our trading sessions. All strategies presented in all posts below are for Positioning but, depending on how markets behave, our style can change so that we can capture good trading opportunities......

Our Trading Styles are discriminated as below:

1) Scalping: Short-term trades, usually betwen 2 to 15 minutes, with stops lower than 8 pips, targeting 15 pips. Generally our Scalping trades apply very low stops (5 pips) aiming quick surges in prices of around 10 pips, in a matter of a very few minutes.................................................................................................
2) Day-Trading: this is our main Trading Style where we dedicate most of our time. Their lenght is usually betwen 10 to 60 minutes, sometimes for more than 2 hours, with stops between 10 and 20 pips and targets between 20 and 60 pips...
3) Positioning: Long-Term trades based on Daily and 4-Hour charts, with stops between 20 and 40 pips, targeting minimum 60 pips. Most of these trades have Open Limits......................................................

Money Management

This is a crucial aspect of our trading, considering the different styles we apply to our trading Sessions. As the Positioning Style requires larger stops (usually the double of our Day-Trading Style), their lot size is lower than usual, generally 50% of our standard lot size. As the Scalping style requires lower stops (usually half of our Day-Trading style), their lot size is usually 150% of our standard lot size. For instance: let´s suppose that our current standard lot size is 200K. For Scalping trades the lot size will be 300K and for Positioning it will be 100K...................................

Daily FOREX Analysis - Brasil

Sunday, September 27, 2009

EUR/USD: Dark Cloud Cover Will Work This Week for the Bears?

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