Danny's Trading Journal

Today's trade in the EUR - I entered long at about 6AM CST having noted the 5&10 period EMA crossover, bullish oscillators and bullish trend on the 3 hour chart...I scaled and out around 1.4535 and was able to stay long for the move up to 1.4580...note I almost got shaken out of the trade a couple of times before the upmoved occurred (pink sell arrows)...

I think the ability to scale in and out is really key at entries like this (my plan is when you first get into your trade, to start scaling out as soon as it looks like you may be wrong, limiting your downside risk, and to add to the position as it goes your way).

We got the same set up as yesterday, with the 5&10 period EMA cross on the 15 minute chart - and today the crossover coincided with RSI crossing the 50 level. Like yesterday I scaled into and out of this trade. I kind of wanted to stay long and see whether we could reach the 50% fib level on the hourly at 1.4643 but decided to close out for the day

http://www.traderslog.com/static/ima...ads/eurwed.jpg

The 5 and 10 period EMA crosses worked well giving 3 trades - got a little chopped on the first and did not take profits early enough...the next 2 worked out....50% Fib retracement on the hourly at 1.4643 came into play, and we saw the bullish 50 and 200 ema bullish crossover on the hourly. End result: + 40 pips


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Euro rocked up this morning - I entered long at around 7:15 - there was not to much heat on the downside in this trade, and my exit was simply based on having reached a target number of pips for the day. Was out late last night so am going to wrap the trading week up a little early today. End result for the day + 27 pips.

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Today's trading: around 7AM CST entered long off bullish EMA cross - RSI was unable to cross 50 - got a little chopped here costing me about 8 pips...entered long at 1.4623 off bullish divergence between RSI and price....EUR spiked up and we got bullish confirmation with EMA cross and RSI finally crossing its 50 center line....exited the long at the 50% level and then the 61.8% fib level. End result: +20 pips. Calling it a day.

http://www.traderslog.com/static/ima...s/eur21808.jpg

Got short around 7AM CST off an inside bar breakout - never got the expected follow through was forced out of this trade. Later got short off bearish EMA cross - this trade worked out and I took profits early. Finally, took a small position off the bullish EMA cross and was able to catch a couple of pips. Net result: +2 pips

http://www.traderslog.com/static/ima.../tueseur18.jpg

Started positioning myself long this morning off support levels on the longer term charts - RSI was also oversold there...stayed out for the CPI release but got back in shortly after...got bullish confirmation from the EMA cross and RSI and tentatively was looking for price to reach the 50 on the 15 minute chart, took a while but it reached there and blew through it...I was lucky enough to have been long from a good price so staying in it wasn't that hard. Net result: +40 pips.

http://www.traderslog.com/static/ima...ds/eurwedn.jpg

Got long this morning off anticipation of the 5 and 10 EMA cross, got confirmation from RSI crossing 50. Scaled out and was flat for Initial Claims at 7:30. Net reslut: +14 pips. Wrapping it up early today, headed to meet Jack Broz of the Marlin Letter down at the CBOT.

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I think today was the toughest day for me in the last two weeks, but there was also a boatload of opportunity. Today I relied on momentum reversals more than the EMA crosses for entries. The upmoves were extremely violent - not surprising considering we are near record highs.

Did one last trade looking for a little bounce off the intraday 50 level and it was good for a couple of pips.

Net Result: +14 pips. A great weekend to everyone

http://www.traderslog.com/static/ima...friday1eur.jpg

http://www.traderslog.com/static/ima...s/50fibeur.jpg

Started getting long the EUR a little after 6AM CST off bullish momentum and anticipated EMA cross. Received confirmation from the 5 and 10 period EMA cross and RSI crossing 50. Nice clean upmove for about 40 pips - exited while RSI hit 70 almost going into overbought territory.

Tried to re-enter the long at 50% of the upmove, but this level failed - continued to position myself long and exited at the end of the European/US overlap session. Net Result: +31 pips.

http://www.traderslog.com/static/ima...s/eurmon25.jpg

Tried taking a dip in the EUR/CHF today - curious about this pair as the spread is even tighter than the EUR/USD - not quite as volatile as the EUR/USD but it has a decent average range. This pair may work well for the EMA Cross/RSI system I have been focusing on. Net Result: +16 pips.

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I'm watching the ascending triangle form on the daily chart of EUR/USD - the pressure is bottling up - the Eurozone data coming out this week may be sufficient to trigger a breakout one way or the other -

http://www.traderslog.com/static/ima...cendingeur.jpg

Fib retracements can work particularly well in periods of increased volatility - such as we saw this morning with the Employment Report. The following is a classic example - GBP/USD retraces to 50% of the initial upmove after the numbers came out - entering long at the 50% level something of a 'gimme trade' IMO
http://www.traderslog.com/static/ima...s/gbpusd50.jpg