Full disclosure here before the fact.
Seems I may have gotten just a tad ahead of myself here.
My target for this pair would have been somewhere around 1.2879 which is about half way up that last retrace. This based on the Memory or Price system for trading double bottoms and tops and what not. So I slapped that into my platform and my potential profit on the trade is around 1.5K with that wide stop. That could take WEEKS to reach THAT target. Just not worth it for me. I’m averaging more than that in ONE week and certainly getting a lot more enjoyment out of it than watching this thing go somewhere. I could be dead by then!!! LOL!!! So my point is: it’s moved down a bit. But if it turns to a profit at some point I’m just going to close it.
I do believe though that if it’s your thing in life: it’s a good trade. So don’t mind me here.
Tell you this much though:
In just looking at that chart again: wouldn’t surprise me in the least if one of these rogue banks doesn’t try flush out the longs with a spike like that again. Look how many times it’s bounced off of the current supposed level of support or thereabouts. And every trader and his dog will have stops either just below the lowest of these tests or just below that spike. If anything: placing a limit buy order at the low of that spike would be the place to be. Or even half way down and add a second bunch of lots at the low of that spike if needs be.
BUT LET ME SAY THIS:
I could not help but notice how this thing today has been a pivot trade par excellence!!! Just by the way. Opened above the daily pivot and shot right up to R3. That’s a long on the way up and a short on the way down!!! BOTH on the same day.
Just thought I’d mention it. Now that trade (just ONE way) could have been worth 1.5K in ONE day today (as the stops would be much closer so the lot size would have been WAY bigger). You cannot argue with THAT trade let’s face it.
The above on the daily charts just by the way.
And something else I’ve just noticed:
Much (again) as I hate to admit it: this pair would have made a profit every single day just about going back WEEKS with Wilder’s Trend Balance Point System!!! I ■■■■ you not.
As a MATTER of fact: I think I shall start doing the TBPS calcs. for this pair and let’s see what happens. Have been keen to find out if it’d work on FOREX pairs (so that I could share with my FOREX minions!!! LOL!!!) (you know: those poor lost souls that are scared of stocks).