Monday, March 26, 2012

Short $AUDUSD from 1.0521

Not sure why I enter these forex trades at night, right before I go to sleep.  Maybe it's when the setups just tend to happen?  Or maybe it's a just a twisted game my subconscious plays on me to see how well I can sleep with overnight positions?  Or maybe it's just a way to get me to wake up in the morning to see how the trade went?

Short $AUDUSD from 1.0521 due to:
  • Downtrend line acting as resistance on daily chart
  • Fast stoch (8, 3, 3) turning down (although it didn't get as high as I would like)
  • 38% retracement from high to recent swing low on daily chart 
  • 20 ema acting as resistance
Stop placed at 1.0555, just above the psychological 1.0550 level, as well as the 1.0545 high of the trigger bar.  However, this might be a bit low based on any fakeout breakout stop runs above the 1.0550 level, and might be adjusted.

Target is still TBD.  But assuming I don't get stopped out over the next 2-3 days (odds are relatively high that I will get stopped out):

  • Could be based on the extension of the Oct 2011 + Dec 2011 swing low trendline (currently around 1.0300 and rising), as well as a Diamond Setups based level
  • Could be the lower downtrend line on daily chart (currently around 1.0265 and declining)
  • Could be .9950 area, based on some DS based levels
  • Could be...
$AUDUSD daily chart
$AUDUSD 2 hour chart

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