From the July 01, 2012 issue of Futures Magazine • Subscribe!

Capturing trends in forex

In “Dueling dollars” (below), the slow but steady NZD/USD, which was in a conspicuous uptrend, experienced temporary weakness on Jan. 13, 2012. The CCI already was in the oversold region when a long position was opened on this pair. The target was hit within two weeks. As you can see, incidentally, an equally profitable signal could have been entered before our trade in this case, as well.

Our entry was 0.7900 with a 0.7800 stop loss. On Jan. 26, the market found our profit target of 0.8200, and we closed out our trade with a 300-pip gain.

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