yesterday at about 9.30am New York time I took a nice short trade on EURUSD using the “1 Hour Forex” system published by Jason Sweezey. It was short EURUSD @1.3031, TP @1.3001, SL @1.3051. The risk/reward ratio was pretty good for this trade: 20/30 = 0.67. Here is the screenshot showing the trade from start to finish:
This trade was not an easy ride because it lasted more than 1 hour with many ups and downs. However it never got close to the stop loss. As always I’d like to share my reasoning behind this trade. First of all right now I’m completely flat in my live forex accounts. I like to trade mainly EURUSD with a medium term perspective (a swing trading that is perfect to do watching 4H charts with PotenzaFX Indicators) and at the moment being long or short this pair seems too risky to me. We are near end-of-year holidays with low liquidity and at the same time EURUSD is at a critical price area. While sentiment is extremely bearish on this pair, the current price area is also a perfect reversal area, so I don’t feel comfortable being long nor short.
And here is where a trading system like “1 Hour Forex” comes into play. I wanted a quick scalp trade with no medium/long term commitment And I know that Jason’s rules are perfect for this kind of stuff. So I left open a H1 chart with Jason’s template and began looking for a trading opportunity around the opening of New York session. As we know the first hours of the London and New York sessions are the best hours for trading this system. About 10 minutes before 9am it was clear that the next hourly candle could be the right setup candle for a scalp trade. At about a quarter past 9 the trading setup was completed and I entered a sell stop order @1.3031 with fixed stop loss and take profit levels. Then I had to wait other 15 minutes to see the stop order being triggered. This is necessary because the trading setup could be invalidated by a new price action and in this case the stop order must be removed. Once the trade was triggered at 9.32am I just let it run. And it brought home 30 sweet pips (that’s 300 USD trading 1 lot). Not bad at all. Another wonderful winner with this amazing system 😉
I guess you are wondering why I showed a PotenzaFX chart for a trade executed using “1 Hour Forex”. The point is I love PotenzaFX and it can be always used as a nice confirmation for any trade, on any timeframe. So I also had a 1 minute EURUSD chart opened with PotenzaFX template attached. I wanted to see if PotenzaFX was able to confirm the trade or rather was raising a red flag on this trade. I was amazed to see that PotenzaFX generated a sell signal right before the stop order was triggered, exactly at 1.3031. Therefore it was a very cool confirmation to my scalp trade.
If you already bought the “1 Hour Forex” trading system I encourage you to study the system and master it executing live trades (first on a demo account or using microlots on a live account). If you don’t know this system yet, you can find more info on this page.
If you don’t know our powerful PotenzaFX indicators and how they can be used to build a solid trading system or as confirmation for virtually every trading strategy, then read this page: PotenzaFX Indicators.
I wish you success with your trading 😉