Before you read further into this post, read the previous EURAUD post where we locked in profit of approximately 150-200 pips.
EURAUD winning pips
Why is it important to know that we had a win? Because I want to use my winnings into this trade, without touching my existing capital. Think, use winning for this trade? Isn’t it a great booster to your psychology? Will you be able to stay true to your conviction better?
Apply the trade process, we skip step 1: Trade identification and goes to step 2: plan for high probability trade
Step 2: Plan for high probability trade: FOMC reinforces resistance
1.6150 firms as resistance
Step 3: Pulling trigger
The best trigger is upon completion of 1234. Essentially, 1234 is a pattern to time your entry (not using 1234 as a timing entry might result in too many winning pips but being spike out first).
I’ve drawn in F6, but since F6 is very near to the opening low of this week (and since it’s monday), I wanted to take a more careful approach and hope to trigger in when a H4 closes below the H4 candle low (marked orange). Note that my opening price and yours will be different if you are using other broker. Do make your own adjustment, otherwise, do use Axitrader
1234, a better timing indication
My aim is still at the bottom of ED.
Trade Process Step 4: Managing Trade (updated 6 Oct 2015 10.20am)
My EURAUD trade was triggered accordingly to what I’ve marked, when price closed below the marked orange level (see chart above).
1.5680 is a historical support and I like to lock some profit there.
However, recent low around 1st Oct low of 1.5750 was a recent support. So I have locked in some profit at 1.5750, the only reason was I like to trim position into RBA (coming up in another 1 hour from writing this post). Note that the SL in this closed trade is wide, that’s because I have always a mental SL to take me out of trade (in this case 1.5950). But the SL put in is really the worst case scenario.
Locked and protected ahead of RBA
Alright, now I have part profit locked in. Now my mental SL is shifted to 1.5850.
Any further action will be done after RBA.
Thanks RBA – My profit hit +160 pips (updated 7 Oct 5pm)
I was busy yesterday with #tflow 4M class. EURAUD short has reached TP. I exited all at 1.5685. That’s an important level pointed out.
Indeed price had some retracement. So I prefer money in pocket. See what our student Andy said.
Here’s what our students reported
I reentered some with my profit again and if I lose, I’m losing my profit. The ultra protective me!
Suspected that #EUR could be strengthening and decided to tighten SL. Shifted focus to shorting #GBP
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