One of the things I’m really falling in love with in the FX market is the speed at which everything moves, it’s all much slower than in the futures market. And since I tend to be a counter-trend trader, this works well in my favor for after I enter a trade, I have much more time to react if things don’t go my way. All of this is greatly due to the ability to better control the amount of leverage you want to use.

There were a number of factors that caught my eye on the above trade. When I was flipping through some charts this morning, I noticed that USD/CHF had taken a pretty big hit but when I checked out GBP/CHF, it hadn’t reacted nearly as strongly. And while the GBP has held up much stronger agains the CHF than USD over the past few months, they do tend to move in the same general direction, so this descrepancy was enough to put the GBP/CHF on my watchlist.

And when I checked out the Daily chart above, I saw that price had stretched 200 pips beyond the FFF- reversal zone. I remember seing this trade a few days ago when it initially broke into the FFF- zone, but when I zoomed down to the 60-minute chart it seemed to still be in a very solid uptrend and since the move wasn’t exponential in nature, I passed.

But today was much different.

I initially got a MACD Cross early this morning as prices blew past the 10 & 34 EMA. This also occured with an ADX cross indicating a strenthening of the downward trend. Then around 8:00 this morning I got the perfect entry as price was increasing smack dab into a crossing 10 & 34 EMA on the hourly.

So I went short with 150 pip stop & 200 pip target looking for a pullback to the 10 EMA on the Daily. The trade is still underway so there are no guarantees that it’ll make it, but I like my start. I’ll be monitoring the position tomorrow and if today’s low is taken out, then I’ll be adjusting my stop to just above yesterday’s high. Call it beginner FX Trader’s luck but since I made the switch I’ve only have 1 losing trade for a 10 pip loss and 5 winning trades for a total profit of 230 pips. I’m not very organized in my recording of the trades as I’ll need to revamp my trading spreadsheet a little bit to account for different pip spreads and values, but once I have done that I’ll be sure to post those results here.