Trade Update - GBP/USD Short

The Trade: GBP/USD Short


Reason/Setup:
This trade is based on the Elite setup on daily charts. I am little late in entering this trade, but since its based on the daily chart, I feel I have some leeway here. Also the trend is strong and the past history suggests that the pair has some more room to fall.

Trade Details:

• Date Entered: April 24 2008, 4pm
• Entry: 1.97253
• Lots: 10
• Stop Loss: no stop loss set
  
• Target: 1.95983

• Date Closed: April 30 2008, 8:00 am
  
• Result: Manually closed position.
• Total Pips: -434
• Profit/Loss: $454.35
• Rating: 2

Comments:
As it turns out, this is not the best trade to enter. As seen from the chart, the price has been moving basically sideways in a very tight channel, with the up and down days alternating. With that in mind, the better trade would have been to play the trend inside the channel and expect a bounce higher, or wait for a breakout from this channel. The only consolation was that the overall trend is definitely downward.

The other point to note is the pattern of the CCI. It basically just oscillates from positive to negative which indicates an unhealthy market. This is the kind of pattern a trader should stay away from unless you are playing the channel as it kill you.