Monday is the best day of the week! (click above for larger image)
This one made me a little nervous.
GBPCHF was rocketing up, a short term trend that started a couple days ago. Then when Monday rolled around (vertical white dashed line) it looked like it might come down and hit the new weekly pivot (dark blue line) so I put in my trades.
I stacked 17 lots from 6685 to 6655 on limit order entries and let it rip. To be a little conservative, I always target about 20 pips off from the actual pivot (turquoise line), in this case the target was at 6650.
Nine of the 17 lots were entered as price started to move down and the limits were hit. Things were going as planned until the pair started to move up again. Oh crap!
I actually should have closed the trade out at a small profit when most of the positions were entered and the pair started to reverse back up. I was away from the computer at that time but I have to figure out a way to notify myself that price is that close to the target. It could have been ugly.
I almost closed the trade out and took the loss, but I was watching the 15 minute chart and price really started to stall at about 6680. Based on this price action, I figured I had a shot at a reversal.
In addition, the British PMI and net lending to individuals numbers came out slightly positive relative to the expected numbers during this period but this failed to move price beyond the 6680 level. There was no other significant news coming out, so that was another reason that I believed the trade might work.
What is interesting is that in the past, I probably would have closed it out right away. This time, I looked at price action and let that be my guide.
So I left the trade on but kept the laptop by my bed so I could check it in the morning. Thinking back on it, I should have set a price alarm, just in case things started to get out of hand. I will do that next time.
The above chart is what I saw when I woke up. Price ripped through the target and I ended up with a +275 pip total profit and a 5% gain in the account. One thing I am considering with this Monday trade is to maybe keep 1 lot on and let it run in case price goes significantly beyond the target, like in this case. It is something I will have to test.
On to the next one!
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