"Forex trading could be your key to financial freedom if you could consistently earn pips and at the same time realising the power of compounding".- Harwin Poon


7.16 Monday

July 16 2:45pm EST- Daily and 4hr chart.

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Clear channel (orange) and a smaller TF (4hr, red) channel. I'll wait for the price to touch the lower orange channel. If indicators start to curve up from the oversold zone, I'll open EUR/USD and USD/CHF long positions. Target Profit (TP) is the orange upper channel. This will be a long term trade, might take days or a week.

Note: the channel on the daily chart is not the same channel I drawn on the 4h chart.

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But on the other hand, if it makes a clear bounce from the 4hr lower channel (which is the red one on the daily chart above), I'll go for a long from there. Target Profit (TP) is the upper channel of the Daily chart. Bollinger band now is squeezing, a breakout is about to happen, whether up or down... is not confirmed yet.

I'm not gonna open sell hedge for now, even if price penetrate the 4h lower channel. The range from current price to the daily lower channel is too tight. Not worth to risk the margin.... unless drop below 1.6500 or the "daily" low channel.

A recap of today's trade:

Last friday (2 post below), I said I opened both sell hedge (1%) and buy hedge (5%) when price is at the middle channel of the 4h chart. Today, price went down and reached the lower channel which is my TP. I closed the sell positions with a few profits, leaving the buy positions in a drawdown. Then price bounce off from the lower channel, back near where we started 'til it loses steam. Since EUR/CHF is a carry trade pair.... there's no reason to panic leaving buy positions opened.

The logic of my friday's trade is,... it is a hedge within a hedge trick. If for instance the price didn't went down today and shoot up. The buy hedge gains will offset the sell hedge loses. But luckly, it went down first and we had the oppotunity to close those sell positions in profit.

The report I'm giving here is only half of whats really going on on my trade portfolio. What I'm actually doing is much more complicated. It is a hedge within a hedge and within a bigger hedge, A triple hedge. I'm not encouraging newbies to trade this way. This kind of methodology needs lots of computation and some basic trading knowledge.