Forex Trading Thoughts and....

I had this trade yesterday where I used an ascending wedge formation for a short entry. It ran nicely for +20 pips.

Normally I don't find many good entries at the weeks open on Sunday afternoon, but this one was screaming for attention. The RSI(14) indicator was oversold on three time frames, two of which I've posted below with annotations. First off we had a pretty nice gap lower in price since Firday's close. Typically gaps are going to get filled, or there will be a significant effort made to fill them. The hourly chart was oversold, the 15-min was oversold and the 5-min was oversold. The question was where do I take the entry since the oversold condition looked to be in place since shortly after the weekly open? I had to wait it out for a reversal signal at a strong area or support. Daily pivot S1 was on the radar as an excellent spot for a reversal. At this point it' s time to monitor the 5-min chart for a reversal candle as price moved close to S1. A doji candle was formed which is an excellent reversal indication at this support level. An entry was taken at 155.20. Price move

Here is an example of a perfect setup for the trading strategy I use on a daily basis. An easy 70 pips of profit. Obviously, they all aren't like this but sure would be nice if they were. You may be asking yourself: "Why did he exit the trade there? It ran on quite a bit farther." Good question. The answer is I traded the strategy where the exit point is the overbought condition of the RSI(14) indicator. I could have chosen to scale out a portion of the position, moved my stop loss down, and let the rest run. Instead I chose to go all out at +70 pips. That kind of profit is just fine by me.