Thursday, February 19, 2009

Trade: EUR/USD currency pair

Triple-screen trading system

First screen:
I have decided that my favourite timeframe is the hourly chart.

Based on triple-screen trading principles, I have to go to a higher timeframe to make a strategic decision (long, short or stand aside) before going back to the hourly for my second screen.  So here I am, looking at the EUR/USD currency pair using the daily timeframe:

It seems like there is very good support at 1.25 level.  I drew a support line at 1.25 and decided to go long.  The blue high-low bar on the right edge of the screen also allows me to go long.

Second screen:
This is the hourly chart for the EUR/USD currency pair:

I see a bullish divergence forming between the price bars and the MACD.  I waited till the price bar turn blue (red price bar forbits shorting according to the impulse system) before I turn to my 5-min forexyard for my third screen and entry.

End of a good trade with 95 pips profit.

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