EU M15 - 8 June '09

EU M15 had opened the week (1.3943) below the Daily PP (1.4055). Therefore, bias is down favouring short positions. Naturally, I waited for a suitable entry. At 1.3990 (coincidentally last Friday's Daily S2), EU stalls and fails to convincingly rise above, save for several candle wicks past on M15. Though I seldom make fresh trades more than 10 pips away of the day's pivot point lines, I determined that a low-confidence short (2 trades x 5 lots) at 1.3990 was warranted. My SL was 10 pips above the Daily PP (1.4065) and my TP target was the Daily S1 (1.3846, allowing for 2-pip spread). The risk was 75 pips for a potential 144 pips (Reward:Risk = 1.92). At the start of the European Session, EU started to drop, allowing for the SL to be adjusted to break-even. EU eventually reached the TP target.

Below the Daily S1, EU had effectively dropped more than 400 pips since Friday without any significant retracement. This fact somewhat prevents me from maintaining my earlier low-confidence bearish view. Nevertheless, upon the open of the 2nd M15 candle below Daily S1, I entered another low-confidence short (2 trades x 5 lots) at 1.3815. My SL was 10 pips above Daily S1 (1.3854) and my TP target was the Daily S2 (1.3722). The risk was 39 pips for a potential 93 pips (Re:Ri = 2.38).

If my SL were to hit, I'd have medium confidence for a long position, therefore I placed a buy limit order (2 trades x 10 lots) at 1.3854 with a SL 30 pips below the Daily S1 (1.3814). My TP target was the Daily PP (1.4055). The risk was 40 pips for a potential 241 pips (Re:Ri = 6.03).

EU rose up and my SL orders were hit as were my buy limit entries. At the close of the U.S. session, my long EU trades were manually closed at 1.3990.

The EU tally for the day:
(2 trades x 5 lots x 144 pips) + (2 trades x 5 lots x -39 pips) + (2 trades x 10 lots x 36 pips)
= USD17,700.00

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