Trade Update - EUR/USD Short

The Trade: EUR/USD Short

Date: April 14 2008, 10am
Entry: 1.58192
Lots: 10
Stop Loss: 1.58362
Target: 1.57892

Reason/Setup:
This trade was signaled by the OzFX system on 1 hour charts and also the Elite setup on 15 minute charts. The entry signal was due to the OzFX setup in 1 hour chart. The chart below shows that the AC and AO were shoring red candles and the Stoch was moving down and were wide. I placed the stop based on the Elite setup in 15 minute chart. The stop was placed just above the 34 SMA line and was 17 pips away.



Result:
As you can see from the OzFX chart, the trade was a valid one. The price continued to move down as signaled by the OzFX setup. But the mistake I was was to place the stop based on the Elite setup on 15 minute chart. I have come to realize that the 15 minute time frame is not reliable for placing trades. As it turned out, the stop was too small for the trade especially since it was placed on a 1 hour chart, and I got stopped out (just barely). Had I placed my stop about 30 pips away, I would have walked out with a big gain.

Date: April 14 2008, 2pm
Total Pips: -170
Profit/Loss: $170
Rating: 3

The rating of 3 is due to the error in placing stop based on 15 minute time frame.

Lesson: Do not base trade decisions on the 15 minute chart. Use it only as a reference to confirm trend.