Reasons for being stopped out
I was stopped out just above .9800, giving me a profit of a little over 100 bips. The stop was brought down based on a clear indication that several key resistance levels were broken:
- The downtrend line on the 15 minute chart
- The resistance line at .9775 where the last key breakdown took place
- The .9800 whole number level where another breakdown previously took place
|AUDUSD 15m 09-29-2011|
At this point in my development as a trader, one important aspect of each trade is whether I learned something. As I was reviewing this trade last night as it was still trending lower, I realized that .9700 was a key support level for at least 2 reasons:
- On a 30 or 60 minute chart, it's clear to see that there were many tests of the .9700 level, each resulting in a rejection. The clues left behind were the lower wicks (bullish signs).
- Looking at the 2 swings prior to my entry, the .9700 level was a near perfect Fibonacci extension
|AUDUSD 60m 09-29-2011|
In the future, I'll have to consider taking profits, or at least partial profits at those key levels caused by a confluence of factors. But overall, I felt the execution on this trade went relatively well.