TRADE #2 OF STAGE 4: SHORT EURUSD: T1 AND T2 HIT FOR PROFIT; STOP LOSS OUT T3 AND T4. STAGE 4 = 2 WINS 0 LOSSES

Here is a potential trade based upon the 4 hour chart. I am looking at shorting the EURUSD. The reason for shorting includes these reasons: 1. The pair is below the 55 DEMA on the daily chart. 2. The pair is currently below the 55 DEMA on the 4 hour chart 3. The Stochastics on the 4 hour chart is in the overbought territory. I am going to use the downtrend line as an entry area. I also will not trade in the Australian session, of which I am in currently, since my coach informed me this a very illiquid session. UPDATE: 2.25.2010 This trade will be completely and totally profitable with both T1 and T2 being hit for profit. I have let this trade ride for quite a while since I want to capture as much profit as possible. It appears as is my modified trading plan has worked out pretty well for the last two trades. Let's see what can happen in the future with this one. Click on the chart to see the trade so far. UPDATE: 2.26.2010 The remainder of the two contracts were stopped out at 1.3635. So here are the results of this trade: ENTRY SHORT at 1.3680, 4 contracts T1 HIT FOR PROFIT AT 1.3550 (130 pip profit, $1,300) T2 HIT FOR PROFIT AT 1.3470 (210 pip profit, $2,100) T3 and T4 HIT AT STOP LOSS BUT FOR A PROFIT AT 1.3635 (45 pip profit each so 90 pips total, $900) Total pip profit was 430 pips!!!! My new system seems to be working well.