A new week, with the quarter and the financial year is coming to a close tomorrow price action should be good. Paul however is laid low with a heavy cold but still manages to do his mic session.
Cable (GBPUSD) has made a low in early London before retracing back. One of the great things that the Tiger Time Lanes Forex software does is show you exactly where in the price cycle you are at any given moment. In this case the price cycle proceeded in the usual way with a retracement followed by another drop, but only posting a higher low (often good for extended reversal trades) before retracing back higher. Paul looked at the time lanes and identified the 15 minute levels. He waited or price to stall and initially took a short at 1.4860. The trade went quickly in his favour so he placed a stop at break even to give him a free trade. However price moved back to stop him out. He then waited for the higher level at 1.4866 and went short again. Again price went in his favour and again he quickly moved his stop to break even. This time, price continued short and gave him a nice +7 pips.
In both instance he moved his stop to breakeven to give him free trades. This tactic not only allows him to effectively have a free trade, but also reduces risk and helps with trading psychology. One of the goals of the 24hr trading room is to minimize risk as much as possible. A further example of good forex trade managenet.
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