EUR/USD Update

I implemented my "indicator trailing stop strategy" and closed this trade late last night for 1 pip profit! ( after coming home from the West Ham v Watford game).

You can see the magenta coloured lines on price and on the macd.  This was indicating a bullish divergence between the indicator and price and whilst I love divergence in the direction of the my trade, I hate it when it is against the direction of my trade.   So for those are are avid trend traders....there was a trade which was in the same direction as the weekly, daily and hourly trend and it failed.......that's the market for you!

EUR/USD

I've taken a short position on the EUR/USD this morning.   The daily chart has been in a clear downtrend since Aug 2011 so I am interested i short positions on the shorter time frame charts.   The 1 hour chart shows a very clear down trend since 29th February and with the price action sitting at the top of the channel, I am able to enter a short position with my stop VERY close to my entry position.    That offers me a large potential RRR (reward to risk ratio).   My first target will be the middle channel line (which coincides with the Fibonacci level .786 of the previous upswing) and my second at the bottom channel line.  You may note that there is divergence between the price and stochastic indicator - you can see a "step" on the and I like trading these as I believe they show a change in momentum of the participants.  I also prefer to see divergence on the macd indicator ...but you can't have everything!