The chart is the 60 minute chart of the EURUSD of which is in a giant downtrend. I would have used a 4 hour chart, but these were too problematic when drawing trendlines. A few days ago the upper trend line was hit and then the pair rejected any further highs. The intent of this trade is to short when the upper trend line is violated (near 1.4375), and keeping a stop loss near the recent high (1.4416).
I am going to start setting my T1 at 1.4350 which is only 25 pips below the short entry. With 3 contracts, I want to be profitable soon so I chose to do it this way. T2 is 1.4305 which is another Fib advance. T3 is at 1.4234 which is a 61.2% advancement of a recent move. (Just click on the chart to see the entries, stops.
UPDATE: Over the Christmas season, I let the order expire since I wasn't watching the trade. I was doing a post-trade analysis and I am glad that I let my order expire. I would have hit the entry limit order only to have been stopped out a few hours later. The high was 1.4457 when my stop loss was 1.4416.
Monday, December 21, 2009
TRADE #1 OF 3RD STAGE: SHORT EURUSD ON LIMIT ORDER; NEVER ENTERED DUE TO ORDER EXPIRING
The chart is the 60 minute chart of the EURUSD of which is in a giant downtrend. I would have used a 4 hour chart, but these were too problematic when drawing trendlines. A few days ago the upper trend line was hit and then the pair rejected any further highs. The intent of this trade is to short when the upper trend line is violated (near 1.4375), and keeping a stop loss near the recent high (1.4416).
I am going to start setting my T1 at 1.4350 which is only 25 pips below the short entry. With 3 contracts, I want to be profitable soon so I chose to do it this way. T2 is 1.4305 which is another Fib advance. T3 is at 1.4234 which is a 61.2% advancement of a recent move. (Just click on the chart to see the entries, stops.
UPDATE: Over the Christmas season, I let the order expire since I wasn't watching the trade. I was doing a post-trade analysis and I am glad that I let my order expire. I would have hit the entry limit order only to have been stopped out a few hours later. The high was 1.4457 when my stop loss was 1.4416.
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