EUR/GBP Long Trade 08 Feb 11

This EUR/GBP long trade was intended as a swing trade lasting at least a day. I use the daily data as my higher time frame to determine the swing (trend) direction, and, 3-hour and 30-min data as my lower time frame to execute the trade.

The clock is shown in Malaysian time (GMT+8).
EUR/GBP daily stochastic was oversold on 07 Feb 11 after retracing 61.8% of its previous upswing and has formed a bullish reversal hammer candlestick pattern. EUR/GBP corrective decline was expected to complete. A buy set-up would be in place once the 3-hour data made a stochastic bullish reversal.
EUR/GBP 3-hour data made a stochastic bullish reversal on 08 Feb 00.00hr 3-hour bar. I placed 2 buy orders 1 pip + spreads above the 08 Feb 00.00hr 3-hour bar high (see cyan square marker).

Both buy orders were filled at 0.84231 on the 08 Feb 06.00hr 3-hour bar (see cyan triangle marker). The initial stop-loss(S/L) was placed at 0.83828 5 pips + spreads below 07 Feb 21.00hr 3-hour bar low risking -40.3 pips. The take-profit (T/P) limit order for the 1st unit was placed at 0.8469 and 2nd unit was placed at 0.8652.

EUR/GBP advanced as expected and the T/P limit order for the 1st unit was filled at 0.84692 for a +46.1 pips gain on the 08 Feb 18.00hr 3-hour bar (see green circle marker).

EUR/GBP continued to advance and when the 3-hour data stochastic has became overbought, I decided to use the 30-min data to manage my 2nd unit. The 2nd unit was closed at 0.84878 for a +64.7 pips gain after the 08 Feb 23.00hr 30-min bar low was taken out (see pink circle marker).

Summary of Trade:

Entry: Long at 0.84231

Exit: Closed 1st unit at 0.84692 for a +46.1 pips gain

Closed 2nd unit at 0.84878 for a +64.7 pips gain

Disclaimer:
Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and information presented in this blog.