20 pips in 10 minutes. EURUSD (23 Mar 09).

Dear Readers how has your trading been recently?

This trade on 23 Mar 09 was a quick 20 pips within 10 minutes. This is the kind of trade you are looking for in Intraday Trading. Quick, low downside and little volatility.


Prelude:
EURUSD was trending downwards for the trading day. Here it is now taking a breather and a consolidation pattern is formed. (Reason: Banks/Institutions are probably clearing routine orders) Notice how the SMAs are trending down smoothly as well.


The Trade:
A short trade with a profit take of 20 pips and a stop loss of 10 pips. Textbook trade of risk-reward ratio 2:1. The thing to take note here is the entry is damn near to the consolidation zone meaning I was confident that any move downwards is unlikely to be a spike.


On Hindsight:
The SMA (10) is acting as a resistance giving the odds of a downwards breakout a higher probability.