Thursday, December 11, 2014

11 Dec 2014: Daytrade #3

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)

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