NZDUSD forex trade using alligator and candlestick technique
This trade is based on the forex alligator and candlestick formations technique. If you want to read more about this technique please check it at the following url.
http://www.myfxtechniques.com/2009/04/16/alligator-and-candlestick-patterns-in-forex/
This is a NZDUSD trade. On April 16th, 2009, the NZD USD trend is downwards and the alligator moving average lines are very wide. But the trend retraced back and at around 7 PM eastern time a doji candlestick is formed on the third moving average line (blue line). I waited for the next candlestick and its formed in the direction of trend. So after the candlestick is completed I entered the forex market at around 9 PM in eastern time. I sold the pair and used my stoploss at around 15 pips above the doji candlestick. Total stoploss is around 45 pips.
The trade went well and I closed the trade at around 2PM eastern time, the next day, with a profit of around 75 pips as I have to go out and I can not monitor the trade. I can move the stoploss around 10 pips below my entry but if the market reveres and hits the stoploss I will be left with only 5 pips profit as there is a spread of 5 pips for this pair. And moreover its a friday so the forex market will close anyhow after some time and I don’t how it will be when the forex market starts again on sunday. Check the trade in the following picture.
If you are using high stop losses you have to following strict money management rules. Please check my article about money management in forex at the following link.
http://www.myfxtechniques.com/2009/04/15/money-management-in-forex-a-very-important-aspect/
Please check the following picture for the trade.
Hi,
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Thank you.