I woke up early this morning unable to sleep. I booted up my computer and started up MetaTrader, which connects to my live Forex trading account. (The Forex Robots – see my past two entries – have still been doing amazingly well for me.)

Tangent: show

I looked at the chart for the USDCAD pair (US and Canadian Dollars), and their MACD and momentum technical indicators. The MACD showed negative divergence on the 1, 15, and 30 minute charts (blah blah, I know this sounds like Star Trek or something). They all had a lot of momentum. The 5 minute chart showed positive divergence, but I thought it was lying.

I opened a moderately pricey short position on the pair (still very conservative for my entire portfolio balance).

Within minutes the pair took a steep dive (for a short position, this is good). I opened another short position. The fast diving trend continued. I opened another, the trend still continued, I closed the first trade for a profit, and I repeated this process several times until, seeing the persistence and strength of the trend, I opened another relatively fat (for me) position.

I watched the fat position the longest before closing it just recently, for nearly as much profit as all the other closed trades this morning combined.