Today I got some good pips on my basket. The first is 25 pips and the second is 20 pips. I think its enough for today. When the market opened in Monday, I saw a gap down on EURJPY and by the theory, this gap will be recovered. And finally in Tuesday 21st May 2013, the gap is covered and I got 25 pips. I know I can get more but I open my trade earlier and it was floating about -40 pips. But it ended in +25 pips.
OK I don't want to talk about the gap trading but, I just wan to show a nice SELL opportunity condition. As always, divergence must be present and there should be minimum 2 significant peaks that breaks the Bollinger Bands. Then, check other indicators such as Pivot Points to help our trade decision.
OK as you see the picture above, price has made some nice up trend in M15 time frame. But the indicator is going the other way. And when the price is hitting the Resistant 1 line, the divergence is formed. I go short at this Resistant line 1 and my target is the opposite Bands. Just in case the price still moving up and break the previous high, we can close the trade or, wait until we see the next divergence and put another SELL position (make sure the equity is strong enough to do this averaging system).
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