EURUSD Short - 3/12/2012 H&S Pattern

Trading Discussion
1

Long or Short: Short

Entry Point: 1.3050

D. Stop Loss: 1.3280

E. Profit Target/s: P1: 1.2820 P2: 1.2660

F. Reward-to-risk Ratio: 1:1

G. Risk percentage: 1%

H. Indicators used: MACD and price action

I. Trade Rationale: H&S pattern on the daily, with bearish divergence on MACD. I see an area of support around the neckline of the pattern, and if that is broken I see the next area of P/A support around P2.

J. Trade Adjustments: I’ll take half off and move my stop to zero at P1, and monitor price action down to P2.

H&S Euro.jpg700×367 25.6 KB

2

I would say to add short position at 13280, and sl will be activated on daily close above 13378. At present 13160 is near term resistance .the neck line of 13054 is still to be breached.