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June 1, 2010

$GBPUSD... closed short trade...

Hey Traders...

Well, it's another whippy session here in FX land...I took the inflection short signal on $GBPUSD that I talked about in my previous post, the Fib level from the May HIGH and LOW (approx 1.4732). We spiked a bit over that, but quickly pulled back in as the US futures briefly turned red also. Heavy GBP selling compared to JPY pairs, especially in comparison to the equities and metals/commodity futures. Always good things to watch when planning these scalp FOREX trades. Very correlated.

Anyways, I did extend my stop about 20 pips over the Fib, which was a good call, the average true range of the 240 minute bars were getting pretty big, so it was prudent.  Covered this trade for a +51 pip profit...Not great, but not bad at all. Nothing to complain about....


I have received a LONG signal for the $EURJPY pair, at the breakout of big congestion around the 112.00 area. After spiking below the infamous 110.00, $EURJPY has acted quite bullish, but has been pulled around by Euro weakness/indecision. Sorry for not posting this BEFORE (which I like to do normally), but it was triggered pretty quick. For the record, entry at 112.11 LONG, and still holding. Currently trading 112.59 and looking for more. Lots of shorts in here guys, easy to spook so be careful in here. I would say anything over 112.00 is safe hanging onto, anything below I am out. I am looking for 113.25 as a profit target.

ALWAYS USE STOPS! Add to winners, cut losers, and trim some as the profit stacks up. Don't cut the winners early, but ensure you take some profit home when you have a green trade. This can be as simple as just ensuring that you 'break even', which is actually a profit because of the spread we pay for entry/exit.

Will update as necessary!


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