Trading Signals for Monday, February 4, 2013

It is the first day of the week, and also the second trading day of the month. The popular currency pair has seen a reversal, and moving towards a sell trend. The pair is constantly surpassing its lows, making newer lows since the day. As of now the 1.3574 is the lowest low, the market may rebound from here, one never knows. For the same reason, our stop losses are firmly in place. Though I have moved the stop loss for the entry that opened last, i.e. the one which opened with 1.3708. The profits on the same had surpassed 100 pips, so I lessened the stop loss by 50 pips, making it at 1.3758. So, currently both are orders are in green, and also both carry the same stop loss. Hence, if the market carries a wave against our trades, then one of our orders will make a loss of 100 pips, while the other a 50 pip, thereby lessening our loss by 50 pips.

In that loss making scenario, I am prepared with another entry order, which is as follows, if triggered, this will be the second order of the month.

2. Sell at 1.3758 for 300 pips, with a stop loss of 100

As far as commodities are concerned, there seems to be a bearish pattern forming, but I rarely go in for the same, so I am sticking to the strategy of wait and watch for both the Silver and Gold.

Happy Trading!!
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