[TW] 02-13-2012 AUD/USD Short by Light Yagami

[Light Yagami]

A. Long or Short: SHORT

B. Entry Point: Half position at market (1.0687) and the other half when/if the price
retrace the rising channel line

C. Stop Loss: The high of the candle inside the channel i.e 1.0753.

D. Profit Target/s: Take half profit when the price hits 100 SMA (yellow line) and move stop loss
to brake even.

E. Reward-to-risk Ratio: Risking 40-60 pips stop loss in order to win at least 100.

F. Risk percentage: Risk 2% of your account.

G. Indicators used: 100 SMA, stochastic (14,5,5), EMA 55

H. Trade Rationale: The price just broke below the rising channel and also already completed a 4 hour candle below the channel. Hence there is a big probability that the price will continue downwards. The price also broke below the 55 EMA (green line) which now acts as a resistance level. You have two options.
Either go short now, or wait for the price to retrace(if it retrace) the rising channel.
The best move is to go short at market half of your position, and the other half if it retraces the move up.

Good luck.

[akantardjian]

I love this trade...I was actually going to place the short at 1.07 after a retracement, but i like the idea of averaging in just in case it doesn't retrace.

[Light Yagami]

Yes good move your are playing it safe.
But if it doesnt retrace your are going to lose a good chance to catch some pips
Thanks for the comments.

[cardav]

I think you are right.pienso que estás en lo cierto .buena suerte tambien para ti.un saludo

[Zokimaster]

It's only raising since the morning... any opinion about this?
When to enter, long or short?

Zoki

[Light Yagami]

As you can see the price has retraced the move and found a resistance at the rising channel and at the 100 SMA. This was due to positive news from Greece sparked investors to sell the USD. If I was going to go short now, I would wait for a candle to close below 1.075.

[Light Yagami]

Also note the convergence - divergence that exists on the 1H charts --> Implying that there is a huge probability that its time for the price to fall.

[cardav]

Also note the convergence - divergence that exists on the 1H charts --> Implying that there is a huge probability that its time for the price to fall.

creo todo va bien.seguimos con posiciones bajistas.un saludo

[akantardjian]

any update? seems like it has hit a peak 3 times around 1.078....retreating each time. Doesnt look like there is much support neat 1.08