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EUR/USD: February 2014 Signal Update

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

We publish Adam’s trading signals daily covering EUR/USD, GBP/USD, and USD/JPY. As they are daily signals which are not updated throughout the day, they are conservative, and as such are frequently not triggered. Adam gives either exact prices at which trades should be taken, or trades which should be taken if confirmed by price action at certain prices.

During the month of February, only one of the signals was triggered: an EUR/USD trade, which broke even. Therefore following Adam’s free Forex signals since December 2013 was profitable overall, as his signals in December 2013 were profitable.

Let’s review the signal that was triggered.

Signal 1 – EUR/USD 11th February 2014

The signal was published at 08:06 GMT. It was given as:

Long Trade

Enter long with a stop buy order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.3643. The trade is invalidated once an hourly bar closes below 1.3643.

Stop loss at the local swing low.

Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take 75% of the position as profit at 1.3690.

As can be seen from the hourly chart below, a pin bar rejecting 1.3643 closed at 15:00 GMT, giving an entry at 1.3654 with a stop loss at 1.3628. The initial target of 1.3679 was hit within 2 hours of entry, at which point the risk should have been taken off the trade. Unfortunately the price did not move higher and retraced to a point back below the entry level within an hour.

The trade broke even.

EURUSD H1 3314

Total Monthly Profit/Loss

The month broke even, with no profit or loss.

There were no losing trades.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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