Profitable Trade Today
February 7, 2006 by Trader Rich
I closed out my EUR/JPY position late this morning after about a $2100 profit (122 pips x 2 lots.) I’ve always heard that entering a position is the easy part and exiting is the most difficult. This certainly has proved true over the last 10 weeks. As I stated this morning, I almost closed this position out early this morning when it was only up $800. Instead, I closed it out at what I thought was the right time, before it retraced to where it is now, about 25 pips above where I exited. Was this the right thing to do? I’d like to hear from some of you because I honestly don’t know. Here is what the 1 hour looks like now:

It looks to me like there is pretty good support at 141.46 after 4 straight tops at this "resistance" level. I exited at the 38.2% fibonacci retrace but it could be in consolidation mode waiting to gather enough energy to continue downward. The price is slowly working its way back to the upper Keltner channel as the 34 EMA or Wave trails about 25 pips above this. By this evening, these channels will probably be superimposed on one another.
I would think about entering back into this position this evening if the level of resistance holds but I’ve found that anytime I exit a position profitable, I get the urge to get back in. It usually turns out to be a mistake. Maybe I should look elsewhere.
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What kind of strategy/toughts did you use/make on this excellent trade?
Thank you,
Tony M.
Just support and resistance with MACD indicator and Keltner channel. I’ll attach the chart I was looking at during the trade but you will see that the price breaks through support and then consolidates for about 20 hours. MACD confirms downward momentum and the pair continues to build up energy. The price bounces off middle Keltner channel line (20 ema) and then I initiate a short with a stop above the nearby resistance.
Tony, click on the thumbnail at the bottom of this post to see the chart I traded on:
http://www.forexproject.com/Blog/Investing_and_Trading/Profitable_Trade_Today/