Trade of the Day

Today’s trade was a Euro Dec. contract with a buy order from a price of 1.13485.  The price had been moving in an upwards trend with the Moving Average blue line above the red line while the price kept moving away from the lines before returning.

The yellow circled green bar is our entry signal as that bar closed at its high and was reversing the mini-trend of the previous three consecutive red bars while still being with the overall upwards trend.  We would place a buy stop order just above this bar at a price of 1.13485 as this bar also has the additional support of the Parabolic SAR red triangles that the previous green bar with a lowside wick that closed at it’s high at a time of 10:05 didn’t have for support.  The last signal is the major support/resistance level of the white line at a price of 1.13500 that offers support to move the price upwards.

Once the price moved upwards we would start to look for an exit point and after the green bar with the really high topside wick was followed by yellow circled red bars that had one close at its low we would want to exit the market.

That would give us a profit of $375.