Weekly Trading Update - 08-12 March 2010

It's been quite difficult trading my 4 hour trading system lately because technically speaking I should still be going short on the GBP/USD and EUR/USD pairs because the daily Supertrend indicator is still red. However this week I just felt that they were both massively oversold and went long on both of them when the EMAs crossed upwards on the 4 hour chart.

I went long on the GBP/USD pair yesterday afternoon at 1.5020. I then closed half of the position for 50 points and let the other half run. I'm still holding this position and I'm hoping it's going to reach 1.52 and have set my limit price accordingly. If it doesn't and falls back downwards again, I have placed my stop loss at 1.51 which will still give me a profit of 80 points, but I'm fairly confident that we will hit 1.52 before that (UPDATE: it did indeed hit 1.52 this afternoon).

Regarding the EUR/USD pair, I went long on this one on Wednesday evening at 1.3633. This one didn't go to plan initially but after setting my overnight stop loss (which thankfully wasn't triggered), it headed higher on Thursday and I managed to close half the position for 50 points. I let the other half run and ended up closing out at 1.3750 earlier today for a very nice profit.
There was one other trade to tell you about, and this one also worked out well. It was on the EUR/GBP pair at the start of the week. The daily Supertrend has recently turned green on this pair so I was only looking for upward EMA crossovers on the 4 hour chart. Thankfully a crossover occurred on Monday afternoon and I managed to go long after a slight pull-back at 0.9050. I then closed half the position the next day for 40 points but was just stopped out at break-even with the second half of the position after a brief retracement.

Not to worry though because it's still been a very profitable week overall. I just hope it continues because the GBP/USD and EUR/USD pairs in particular are quite difficult to trade at the moment because they've fallen so heavily in recent months. I really want to see 1.5453 and 1.3945 (the current Supertrend levels for these two pairs) taken out as this would signal the start of a new upward trend, and would make trading a lot easier.

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