My EUR/USD Trade (30-10-2008) --- Position Squared

*Click on the images for the enlarged version.

Howdy everyone,

Before I start, wish everyone a Happy Hallowen 2008 :)

Let's get started. My trade on EUR/USD yesterday (30-10-2008). I looked at the charts the whole day and price just keeps on dropping without giving me any story to initiate any open position. What my four teachers had taught me is that, to be patient with the market, stick to my rules and trading plan and that is what I did and continued on doing corporate action and pricing at my desk.

I came home, had dinner at home because my wife was feeling a little unwell. Then I went back to sit in front of my "VGN-C25G/B" to look at my charts.

Then I saw market had an interim support at the price line of 1.3033 and 09:00pm (Singapore Time) | 01:00pm (GMT) candle broke the price line. At the same time MAs are turning below, my slow MACD is already below, Stochs changed its mind and turned back below.

I initiated a short position at the price line of 1.2956 at 10:04 (Singapore Time) | 02:04pm (GMT). My Stop Loss at 1.2995 (39pips) and Target Profit at 1.2845 (111pips). Risk : Reward = 39 : 111 = 1 : 2.8

Why my Target Profit at that price? With 50% Fibo and my Weekly Pivot Point, they are at par at the price line of 1.2815 and a price action support at 1.2843 (28-10-2008's high). Hence, being a conservative trader as always, I placed my Target Profit at the mentioned price line at 1.2845.

I waited for the 10:00pm (Singapore Time) | 02:00 (GMT) candle to finish forming at the end of the hour. When it was done, it was unable to clear below my 200ma support and resistance at yesterday's high. Hence, I shifted my Stop Loss to Protective Stop at my entry price before I went to bed.

Woke up today and found out that my Target Profit has been hit at 11:46pm (Singapore Time) | 03:46pm (GMT), just as I was about to sleep :)

111pips profit for this trade.

Peace and trade safely everyone...