The Euro Market has been keep Bullish since Dec 01, 2010. Today, I went from 110 pips to almost 250 pips. I have a bad experience when I reach the +250pips gain. Everytime, the Market almost went back from 250 to hundred pips. When will I exit the trade? I still figure it out.
Click to Enlarge the Chart
Break the Coral Line
Let take a look at the Four Hour Chart on EUR/USD. As you can see that the Bullish Green candlestick (THV3 HA) is totally above the Ichimoku Kinko Hyo. One big difference between yesterday and today Market is the candlestick has break over the THV3 Coral line (Red Line). Although this Cora Line is still a show Bearish Red Line Signal on the Chart, I believe it may change the signal Coral Line to Bullish Green Line next couple days.
CCI & Momentum Reach Maximum
As you can see on the Chart Both CCI and Momentum is oversold trend so far. The CCI line is almost reach 200 and it seems it going a little downward to 160. Meanwhile, the Momentum is reach the top @102.436 and going back to 101.8455. Obviously a Flat Trend Market is coming when both CCI and Momentum is start getting back to normal.
When will I exit the trade?
On my last Short entry position on Nov 26, I have reach +250 pips. However, it ending up Exit the trade and gain 150 pips while the Trend going to a opposite of Bullish Trend since Dec 01, 2010. The reason I am exit so late is because I would like to wait until the Momentum indicator is over 100(Momentum Indicator over 100 mean it will go Bullish). However, it seems that I should not wait the Momentum Indicator to exit the trade.
Right now the situation is quite the same as Nov 26, 2010. I have almost +250 pips gain right now and still holding the trade. Should I relie on CCI indicator which is faster signal than Momentum indicator to exit the trade?
Exit the Trade on Ichimoku Kinko Hyo
I have been using 4 hour chart to trade since last Month. Base on my experience on reading the four Chart, the gain on the trade is mostly between 150 – 300 pips. Right now I have reach almost 250 pips gain. In other words, I already the reach the Maximum gain on the trade. Therefore, I should find a Indicator which provide reasonable and quickest way to exit the trade. That’s why I decide to use Ichimoku Kinko Hyo to Exit the trade.
How? When the candlestick is touch the Ichimoku Kinko Hyo, I will exit the trade whatever if the candlestick is still bullish or other indicator (CCI, Momentum, THV Trix crossing…etc.) is still bullish indicator.
Why it is Reasonable to exit the trade on Ichimoku Kinko Hyo?
The candlestick is touch the Ichimoku Kinko Hyo which mean it may have a opportunity to going back to opposite trend. Even though it is not true, I can reentry the trade when the candlestick is break the Ichimoku again