TRADE #3 OF STAGE 2: SHORTING USDCAD, 1ST CONTRACT PROFITABLE

On a daily chart the USDCAD has broken out of a channel to the upside. If you look on the expanded daily chart you will see that 1.0815 is going to provide some resistance.

Moving on in a little closer to look at the channel and the previous high, I noticed that the previous high at 1.0747 would probably be resistance. I chose to take a short position on an even number as close to 10 pips below this so I set a short entry at 1.0736. My T1 will be the upper channel line at 1.0662 with a stop loss at 1.0807. My T2 will be 1.0574 which is a 50% retracement of the most recent move.

The realization does set in that this in a countertrend trade noting that the 4 hour chart is in an uptrend. Maybe this trade will be a learning lesson for me again much like the countertrend trade I did in class.

UPDATE: 12/17/2009

I don't know exactly how I did this, but I was changing my stop loss order and when I clicked on the chart it immediately closed out one of my positions on the USDCAD short position. So in order to protect all of my profits, I chose to move my 2nd stop loss into the money. So for this trade, my third of the second stage of training, will be a success. This chart is the 4 hour chart and shows where I got out of my position and where my target along with the stop loss are located.

UPDATE: 12.18.2009

I was checking on my USDCAD trade to see how things are going. My second stop loss and my T2 are absent from the chart. I went into Trade Manager and saw that my ordered was "rejected," but I cannot find a reason why. I can only assume that I input my data incorrectly when I changed my stop loss order. So I reinstated my stop loss, but this time I moved it down to 1.0708 on the short position. My T2 has been moved up to 1.0612 which is a 61.% retracement from the most recent upswing.

UPDATE: 12 21 2009

Here is a completely successful trade. Both T1 and T2 were hit with volition. The first chart is a 4 hour chart which shows a perfect trade of a double top and subsequent respect of other trend lines.

Entry was at 1.0736 on 2 contracts. T1 was 1.0612 and was hit a few hours after entry. This was a 124 pip profit.

T2 was 1.0574 and was a 162 pip profit. If you look on the 15 minute chart here, you will see the overall trade and the fluctutions that were present in this pair.