Simple Forex System Trading

I didn’t take this trade because the divergence appeared right on Friday before the Easter weekend.  I normally don’t like to leave positions opened over the weekend due to the uncertainly.  Who knew?  Euro rallied as soon as markets opened after the Easter weekend.  Had we opened a long position at around 1.3120 with the regular 100 pips take profit at 1.3220, and stop loss at 1.3020, the long position would have brought in a 100-pip profit at around 12:00 GMT today.  Who knew!

The divergence appeared at around 1 AM GMT; however, I did not take any action because of the Easter weekend.  The Asian and European markets appeared to be very slow.

The Awesome Oscillator divergence occurred between 6 GMT and 8 GMT in Euro Dollar and Euro Yen pairs.

I missed both of them because I set the entries too low and the prices were never hit.  For Euro Dollar, after it set the low of 1.3148 between 6 GMT and 7 GMT, I set the buy price at 1.3155 at 7 GMT with 100 pips for take-profit and stop-loss.  The price went as low as 1.3168 and never looked back again.

For Euro Yen, I set the buy order at 131.10 at 8 GMT, but the price went as low as 131.15 and then reversed.

Found the Awesome Oscillator divergence on the 1-hour chart in three currency pairs earlier, EUR/USD, EUR/JPY, and GBP/USD.

I placed a limit sell order for EUR/USD at 1.3570 at around 6 GMT, but it was not touched.  The price went as high as 1.3565 and then turned south.

The sell orders for EUR/JPY and GBP/USD were both filled.  For EUR/JPY, I placed the limit sell at 137.00, with 100 pips take-profit and stop-loss.  The order was filled at around 7:30 GMT.  The price went as high as 137.42 before it reversed.  5 hours later, our 100-pip take-profit target was reached.

The British Pound sell order was also a winner.  The limit sell was filled at 1.4930 at around 6:45 GMT.  The take-profit and stop-loss was also 1:1, 100 pips.  The price went as high as 1.4960 before it reserved.  About 6 hours later, our take-profit target was hit.  Another 100 pips of profit.