[TW] 8-27-2011 EUR/USD (Short) by Pip Devil

Trading Discussion
1

EUR/USD, 1-hour

Chart:

eurusd-sell.jpg700×525 36.5 KB

Long or Short: Short
Entry Point: At market - 1.4495
Stop Loss: 50 pips trailing stop
Profit Target/s: 1.4350
Reward-to-risk Ratio: roughly 3:1
Risk percentage: 1%
Indicators used: None
Trade Rationale:

Despite the move up, EUR/USD remains inside a range with 1.4500 as a strong resistance. Capitalize on this by continuing to play the range until it breaks out. Sell at market and aim for the bottom of the range. There was also no sign of QE from Bernanke in the Jackson Hole, so that should help at least prevent the USD from selling off.

Trade Adjustments:

None. Just set and forget!

2

Good underlying logic. It almost looks like the stop hunter robots read your piece stopping this trade out at 1.4545 with a high of 1.45463 at last glance. Maybe next time call out a signal to set the same trade at the stop to make good use of the robots. I’ve seen repeated violations of support and resistance like this that make me look for the outliers and expect fewer entries.

3

Yeah. the trailing stop was exactly hit and I think the resistance might be broken.