Update: EURGBP short trade

This Fibonacci funnel trade is making slow progress.  It had a false breakout during the course of today, highlighted by the orange circle, and has re-entered the funnel.

However, my stop loss is in place as well as my profit target so I will let the trade run it's course, in accordance with my strategy and money management plan.

New Short Trade EUR/GBP

I took a new trade on the EUR/GBP pair shortly after the market opened last night(Sunday).   The pattern is a volatility funnel.

The chart shows the funnel and the thin green line shows my traditional entry point.

However, I often take what I call an "early entry" trade and this I what I have done here.   The entry was just after the price action appeared to have made a clear high to form the funnel.   Obviously, this is a higher risk entry than waiting for the break (or a second chance entry), but it often works well and increases the R:RR dramatically as it means your stop (red highlight) is much closer to entry but the target (green highlight) is the same as if it were a traditional entry.

FTSE Short Trade

My FTSE short trade has been stopped out for a full loss trade.

Ben's helicopter effect I think!

New FTSE Short Trade

The market gapped up again this morning and I've just gone short the FTSE100 cfd.

It's a very short time frame setup and my stop and targets are as shown.  MY stop is just above the 1.272 Fibonacci extension on the previous swing and targets are at R:RR of 1:1 and 2:1 respectively.

Note the bearish divergence between price and indicators as highlighted by my orange lines.

FTSE Short Trade closed for a profit

I have closed my FTSE short trade for a profit.  It was a little frustrating as it made two attempts to break down big time...and failed.   I had trailed my stop and was stopped out as you can see o the chart.  However a R:RR o 1:1 in 24 hours is very acceptable!

New short term trade - FTSE 100 short

I've taken a new short trade today on the hourly chart of the FTSE100 CFD.

The price has been trending down since 1st May and has formed a pattern within a pattern.

The first pattern is an inverted version of "Fibonacci Funnel" which is highlighted by the green lines.   This is a bearish pattern.   The second pattern is an ascending triangle (blue lines) which is normally a bullish pattern.   However, it has just broken to the downside and I take that as being bearish too.

Furthermore, there is a bearish divergence (purple lines) which adds to my edge.

The price may retreat into the funnel or up to the lower trend line of the triangle for a re-test (which is a common occurrence) before continuing it's downward trend...........but then again it may not!

In any event, my protective stop and profit take orders are in place.

Valspar trade stopped out VAL:NYSE

My trailing stop has closed my Valspar trade before reaching my second target.  Only time will tell if my stop was placed at the correct level, but, I place a lot of trust in the Fibonacci ratio's and have made this part of my trading plan so I try to enforce it rigidly.   This was a nicely profitable trade after all is said and done.

VAL:NYSE Update

Valspar continues to move down toward my 2nd profit target and my stop is trailing in accordance with my plan.

VAL:NYSE Update

Valspar is making progress towards my next profit target and my trailing stop is in place.   It made a strong move down two days ago and then made a weak attempt at a bounce which, from my point of view is encouraging.

VAL:NYSE Update

Valspar has made a sharp move down today which is very favourable for my trade.   My stop is being trailed and my remaining profit take orders are in place so the trade will now run its course while I continue to monitor the price action.

VAL:NYSE - Update

Valspar (VAL:NYSE) has sold off this morning along with the market in general.   The price has hit my first target at the break of the lower trend line and I have taken some profit there and moved my stop to break even with a trailing stop. I will continue to manage the trade and act in accordance with my trading plan strategy.

New Short Trade - VAL:NYSE

In line with my bearish stance on the whole market/economy, I've entered a new short trade on Valspar (VAL:NYSE).   The stock has been in a strong uptrend since September 2011.   However, the price action appears to be weakening within a tightening rising wedge.   I've gone short this morning at the top of the rising wedge.   There is strong divergence between the price  (making higher highs) and the MACD indicator making lower lows.   Stochastics are oversold and the market has made a small bounce this morning.   By entering at the top of the wedge with a tight protective stop loss order, my first target (at R:RR of 1:1) lies just at the bottom trend line of the wedge, which means that could be achieved even if the pattern continues to hold and doesn't fail.   Should this be achieved, I will be looking for the second target to be just above the .382 Fibonacci level at $43 and the third target to be just above the .618 Fibonacci level at $37.

Closed for profit ARM:LSE

I've now closed my ARM:LSE trade as it has hit my first profit target at 575p.   This gives me an overall R:RR of 1:1.

As I stated yesterday..the price action of this stock has been resisting the drop so I decided to close 100% of my position at the first target level.

Update - PMH:NYSE Hits all 3 targets

I've closed my short trade on PMH:NYSE as the price has hit all three of my profit targets in less than 4 hours.
My final R:RR on this trade was a very nice 3:1.

Update - ARM:LSE

My short trade on ARM:LSE is still in progress albeit it has not hit my first profit target yet.   The price action has shown some resilience to the current market sell-off.   However, the hourly chart has just closed below the neckline of a head and shoulders pattern so I am looking for the price to decline further and meet my first target.  I will review the chart at that point, but, given the resilience I referred to earlier, I am minded to close the whole trade at the 1:1 R:RR.

Update - ARM:LSE

I have taken the unusual step of moving my stop away from the price action i this trade.   The original rising wedge is still technically holding but the price continues to rise.   This price action is not being backed up by the indicators and whilst price is the most important factor, I have decided to move my stop to just above the point where the rising wedge lines cross.   That, for me, is where the point of maximum resistance should be and I am therefore taking the view that If the price breaks through that...I'm out!.

Many traders will tell you that "moving your stop" is a cardinal sin and in general, I agree with that sentiment.   However, I can count on one hand the number of times I have moved my stop away from the price and therefore increased my risk amount but, in this instance, I am happy to do so.

Update: ARM:LSE

MY short trade on ARM : LSE is still running though It has not developed as I had hoped.  The price action broke the wedge which filled my order (the green circle).  The price then re-entered the wedge and run upwards, coming very close to my stop loss order(the red circle).   However the price has subsequently retraced and is now back up against a support level at 587p.  I need the price to break down through this level.   either way! It could go either way.   Notably, the price has been making higher highs but my macd indicator has not made higher highs.   This should be a bearish indication for the price.  The duration of this pattern on the hourly chart was 116 bars...I have been in the trade for 45 bars so I will allow it to run  and monitor it along the way.  As such, I continue to watch and wait.

New short trade ARM:LSE

I have entered a new short trade on ARM Holdings, ARM:LSE.

The 4 hour chart is showing that the price has respected the Fibonacci .618 retracement of the most recent swing and my momentum indicator is rolling over.  

The hourly chart shows a clear rising wedge and I have entered at the bottom of the wedge, at the first re-test of the trend line after the price broke through.   My macd indicator is showing a bearish divergence with price.

My stop is just outside the top of the wedge and I've placed my first target limit order.

EUR/JPY Stopped out

My EUR/JPY short trade has just met its target BUT...not before stopping me out this morning!...
This is one of the hazards of trading.   This is an instance where the AB=CD and the Fibonacci level didn't turn out well for me.   Subsequent to being stopped out, the price has met all 3 of my profit targets so I will take the positives pout of this and move on.

EUR/JPY Short Trade

I am short the EUR/JPY.   The set up is on the hourly chart and is an AB=CD within a channel.
I entered at the "D" point which is just inside the channel.   The purple boxes on the indicators show a divergence between the indicators and price.   I have placed my stop further outside the channel so it is above the 1.272 Fibonacci extension which I hope will give me some extra protection if the price spikes through the channel.   This means I simply reduce my trade size so that my £ risk is within my money management strategy.