This trade looks a bit risky even though the entry criteria were fulfilled.
Firstly, USD strengthened tremendously from 10am (GMT) onwards. It has gone up so much that I opin it may just take a break or retrace. I was also thinking whether I should wait for a small pullback for a better entry but decided to get in before it is too late. After I got the trade, I was down 30 pips within 15 min and it surely isn’t a good feeling.
Secondly, the rate of fall for EUR/USD has slowed. It is obvious as the weekly pivot levels closed up. For the past one and a half week, the pair is actually range bound. If it can break below the lower band, it should have the momentum to go lower.
The pair did broke below the low and I shifted the stop loss to the day’s high. Subsequently, it appeared to be a fake breakout and the pair rebounded strongly. My stop loss was hit.
Sold 1 mini contract at 1.3477 on 1 Mar 10.
Bought 1 mini contract at 1.3561 on 2 Mar 10.
Loss = -84 pips
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- EURUSD (long) – closed on 28 Dec 09
- USDCHF (short) – closed on 18 Dec 09
- AUDUSD (short) – closed on 29 Jan 10
- USDCAD (short) – closed on 19 Jan 10
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