Final trade for today.
This trade took place in the first half of the Euro / US overlap session. Price on the AUDJPY plummeted 70 pips in the space of 5 minutes, before retracing to yesterday's low. This level was also the 50% retracement level of the 70 pip move, so to me, this looked like a good area of resistance.
I saw a small bearish reaction, and entered short here. In context of the massive volatility, I wanted price to move down, and move down quickly.
The next candle was very hesitant, and didn't move down much. When I saw that price was retreating back towards my entry, I moved my stop loss to around breakeven. Price quickly took out my stop loss, and I managed to salvage a small 0.2R profit.
This was a losing trade, but due to good trade management, I managed to get out in the green.
In any trade, have some idea of how you want price to behave. If price isn't behaving as you predicted, it's usually a sign to be very cautious.
(click to enlarge)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.