* You are viewing the archive for June, 2010
Price of GBP/USD closed above the cloud at 6 PM GMT. Placed a buy order at 1.4808 with a take-profit target at 1.4888, and a stop-loss below the cloud at 1.4750. Carried the trade over the weekend because British Pound remained above the cloud but did not hit the take-profit target by the Friday close.
The strength of the Pound continued. Finally, the target was hit at 5:15 AM GMT.
I recently started to look into the Alligator indicator and found that it could be a fairly simple indicator to use to trade Forex. First, if you are not familiar with the indicator, here is a good introduction. I applied the indicator on different currency pairs. After some observation, I think EUR/JPY and GBP/JPY can yield more profitable trades from this indicator.
I prefer to trade more conservatively meaning that we wait for a trend is set up and the price retraces back to the support or resistance level before we open a position. Perhaps, it is easier to illustrate the idea on a chart.
So above is an hourly chart between 5/18 and 6/3. 7 trades could take place. 5 of them could be profitable. 2 of them were losses. Not a bad indicator to use after all.
