I saw Teacher’s signal to short this pair in the forum and verified with the chart. Indeed, the GRBB had 3 thick red short bars and the HMA was about to turn orange. I was 15 mins away to the next formation of candle at 8am so I waited for a complete candle to form below this week’s PWP. I entered at the open of the next candle.
I was looking for a short trade as the pair has seen making higher lows since it’s low at 21 Apr 10 (see chart below).
Unfortunately, dollar was strong across the board. The pair hit my tight stop loss. The price did not reach my stop loss price but because of the spread, my trade was close.
If you take a look at the bigger picture, the pair is actually edging upwards slowly with a series of higher lows. And the peaks were also forming a downward trendline. The pair is signalling an uptrend and by shorting it, I am doing a countertrend and thus it has to be a fast trade, especially when it hits the upward trendline.
It would have been better to place the stop loss above the high on 27 Apr 10. But due to a small reward that I am expecting (because of the uptrend signal), I did not want to risk more. Hence, I placed a lower stop loss and was triggered. The lesson learned is that I may have waited for the pair to move closer to the upper trendline to short, which will get me a much better risk-reward ratio.
Sold 1 mini contract of USDCAD at 1.0112 on 4 May 10.
Bought 1 mini contract of USDCAD at 1.0163 on 4 May 10.
Loss = -51 pips
You may also like:
- USDCAD (short) – closed on 8 Dec 09
- USDCAD (short) – closed on 19 Jan 10
- USDCHF (short) – closed on 18 Dec 09
- USDCHF (Long) – closed on 16 Feb 10
- USDCHF (short) – closed on 4 Dec 09
- USDCHF (Long) – closed on 24 Feb 10
- USDJPY – closed on 14 Apr 10
- AUDUSD (Long) – closed on 18 Mar 10
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