ForexSpirit

I took a position early this morning at around 1.2065.  This is at the bottom of Q3.  My current plan states that I should only use a one lot entry in both Q3 and Q4.  I am wondering if it might make sense to slightly alter that.  The upside to the top of Q4 is around 1.2250, a good 200 pips away.  To make the most of any move that covers those 200 pips having an entry of 1.5 lots might be more beneficial.  Since I can’t enter micro lots on my current demo account I have used a two lot entry.

Bad US data was released at 10 a.m. and the Euro shot up to around 1.2130.  Since the up move stalled over lunch and the detrended oscillator indicated a comparable high with other recent thrusting up moves I closed out my two lot position.

A relative high on the detrended oscillator was reached here on the 2 hour chart.

 
On the 4 hour chart the detrended oscillator has not reached the highs of the first and last main peaks but is quite close to the middle two.

In Dirk’s daily brief he foresaw potential for the dollar to strengthen on even half decent US data, especially considering the sell-off of Euro on Sunday and Monday’s Asian session.  Medium term forecast is to breach 1.2250.
 
So when Euro rallied and then stalled I wasn’t going to give up some good profits.

It was the manufacturing data that prompted today’s move.