A-B-C-D Trade - page 113
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
23.6 hit at 1.3526. Next exit levels:
38.2 = 1.3535
50 = 1.3543
61.8 = 1.3551
If blended entry was 1.3512 (+3-pip spread), S/L 1.3505 = 10 pip risk with spread.
At 38.2 exit R/R = 20/10 and 2:1
50% = 28/10 and 2.8:1
61.8 = 36/10 and 3.6:1
Layered exits cool too.
If trader took partial profit at 38.2 fib of 2/3rd of positions, S/L moved to 1.3530, and balance 1/3rd exit at 50% fib, the total R/R would be 3.3:1.
If trade stopped-out before 50%, then entire trade would end up with R/R of 2.7:1.
We'll add this calculator to the units on google docs template.
Ahead is U.S. data at 13:30 and 14:55 (Consumer Confidence due to rise). So, we'll need to pull the plug on our EUR/USD BUY trade at a moments notice as bets are on positive USD outcome.
After EUR/USD made a courtesy touch of 1.3507, to appease technicians that can now say "I told you so", pair making 3rd effort to crack the 23.6.
This is Europe's last chance of week and traders may not want to be caught long EUR/USD (and caught not long USD). Some profit taking (causing pair to rise further) is inevitable, but we have the aforementioned data in the way first.
Pulling to break-even as soon as a candle closes above the 23.6, or a portion right now, would be prudent.
Monitoring the EUR/JPY, which is cross-pair correlation, kept us from exiting a portion of position as that pair is rising.
Pulling to B/E and looking to exit 2/3rd soon, as we are now above the 23.6.
Exited 2/3rd at +15
Tightened S/L on balance position to 1.3519, just below last candle, for +7 if stop-out.
Out balance 1/3rd for +20
After spread, we made average of 15 pips. So end result was R/R of 15/9 and 1.7:1.
Although we mentioned several pairs on set-up, we were focused on EUR/USD. This was due to it's potential to make a 100% retrace. We view this type of price action as one of the highest probability bounce trade opportunities.
We just had to execute the rest of the techniques to make the entire trade work out. This includes pre-trade R/R assessment, good entry/or layered entries, and trade management.
Although we didn't trade to the 38.2, we made definitive decisions on exits as we knew the R/R was still good.