Friday, December 12, 2014

11 Dec 2014: Daytrade #4

This was a trade I took just before I went to sleep.

I was checking the charts one last time and saw a bit of price action that I found interesting. A short-term support level had formed on the EURUSD on the M5 chart. I noticed that price had stopped bouncing off support, which told me that buyers were exhausted and the support level was going to break.

I quickly entered short, using a tight stop loss. I wanted support to break quickly and take out the stops lying underneath. 

Price poked through support, but only a bit. It then began to gyrate up and down. This wasn't the reaction I was looking for, so I got out at a nominal profit of 0.2R (enough to cover transaction costs and a bit). I managed to avoid a loss.

Because my stop loss was very tight, I was able to aim for a reward of 3R or so. 

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