Ciao a Tutti,
in the last few trading days DuettoFX gave a great opportunity to ride the EURUSD downfall. I combined the two techniques explained in these posts:
The result was a +357 pips ride between the two dashed red lines shown in the picture below:
Here is my reasoning behind this huge trade: first of all we had a perfect double top at 1.3485 with a very clear divergence on DuettoFX (look at the two white lines on chart). I entered short at 1.3470 some hours later the second high, when it was pretty clear that the divergence was actually in place (see the dotted vertical yellow line). The profit potential of this trade was +160 pips within the first 24 hours. I closed half trade at 1.3350 (+120 pips profit) when I saw some signs of a possible bullish reversal, and put a breakeven stop-loss on the second half. At that point the DuettoFX green cloud was clearly disappearing, so my expectation was for a new red cloud developing soon. After 24 hours the DuettoFX red cloud was formed with a spread > 2, so I had the opportunity to enter short again at 1.3299 (see the solid vertical yellow line). I added again the first half of the trade that was closed previously. My profit target for this second trade was +186 pips since the distance from the entry price and the highest high 60 bars before was 186 pips (see the two red lines departing from 1.3299 on the solid yellow line). Therefore I closed the trade entirely at 1.3113 and I’m now flat on EURUSD. This was a crazy ride for sure 😀
Of course you could also have taken advantage of the EURUSD downfall using PotenzaFX, which I always keep open on a EURUSD 4H chart:
In this case the short signal was at 1.3345 on the opening of the first candle after the dashed vertical red line. By the way, you can also notice how PotenzaFX correctly signalled a beautiful long trade at 1.3147 on the 17th of February with +330 pips profit potential (opening of the first candle after the dashed vertical green line). In this case PotenzaFX anticipated the long entry which was signalled by DuettoFX at 1.3222.