Monday, January 5, 2015
New Signal EUR\CAD
*Trade Update: Jim liquidated his position and was stopped out @ 1.39300. He was up 10 pips in the trade at one point and made the decision to hold figuring shorts were covering their positions. He doesn't give much room when the trade goes against him when scalping. Cutting losses and maximizing gains is what it's all about.
The Eur\Cad pairing is coming up on the 1.3900 support level. Jim trades the Finger Trap Method and uses a moving average of a 5 minute and 1 hour time chart. That's how he has it set up. In addition to the 5 minute and 1 hour charts Jim also looks at the Daily - Weekly and Monthly charts.
As you can see by those time charts the pair is weak. Surrounded by the bad Euro news as of late Jim is expecting the pair to test and break through the 1.3900 3 month low. If\when it does Jim will take a short position and look for a run down to the 1.215 level which would be a run at the 3 Year low.
Jim has a trading style where he looks to take at least 10 pips on his scalp trades - which of course will depend on the volatility of the move. While he is looking at the pair to make a move towards the levels mentioned above, he is not holding his position long term as an investment. If he does add to his position he will post updates on the blog to let everyone know any changes in his outlook and\or position. Jim is strictly a scalp trader not a long term investor. He will take what the market gives him.
Also, with this pair at this time - he will only be risking 25-30 pips as a stop if he puts a position on..