AUDUSD (short) – closed on 29 Jan 10

Entry criteria:
1) Default MACD crossover
2) Long MACD still negative
3) Stochastic crossover downwards 

Despite H4 stochastic upwards and less than 3 hours from important US news release (GDP), I went ahead with the trade as I felt it can be a retracement based on criteria 1 to 3. The Default MACD crossover indicated a retracement while the negative long MACD indicated the trend is still downwards. I had intention to exit before the news if there are profits to take. This is not a very good trade as the trend is unclear, indicated by the numerous crossovers of moving averages. As time nears the news release, there was’nt enough profits to take so I held on to risk for the gains. True enough, the pair reacted to news release after 9:30pm. Price began to fluctuate more and eventually hit my stop loss.

Sold 1 mini contract at 0.8596
Bought 1 mini contract at 0.8932

Stop loss was set at 0.8964, based on 38.2% Fib level.
Profit target was set at 0.8845, based on Daily chart support.

I shifted my stop loss to 0.8956 to as I reckon that if the price breaks the day high, the downtrend is likely to reverse. The day high is a strong resistance with the price testing the level 4 times without breaking. I exited the trade after the resistance was broken. Monitoring further, the price went south and I would not have been stopped out if I kept my stop loss at 38.2% Fib.

You may also like:

1. USDCHF (short) – closed on 18 Dec 09
2. AUDUSD (long) – closed on 13 Jan 10
3. GBPUSD (short) – closed on 17 Dec 09
4. EURJPY (short) – closed on 13 Dec 09
5. EURUSD (long) – closed on 28 Dec 09
6. USDCAD (short) – closed on 19 Jan 10
7. USDCAD (short) – closed on 8 Dec 09
8. USDCHF (short) – closed on 4 Dec 09

Tagged as: FOREX Trades

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