Here's a 15-minute chart that shows how I'm adding to position as the market continues up. I don't follow this approach a lot but it can be profitable in the right market conditions. Right market conditions are when a market is reversing, even if only in a corrective rally. My positions are long from 1.2165, 1.2208, 1.2254, 1.2283, 1.2296, and 1.2309. On each buy I move stop as quickly as possible to breakeven. These all now have their stop set at various levels of profit.
At this point the market may retreat back to the short-term downtrend line at 1.2333 where I'll study price action and possibly add another position. The rate of ascent is very steep so a pullback is likely.
If the pair breaks 1.2388, one might want to consider going long although momentum will be key.
Here's the 15-minute chart:
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.