EUR was basing for a while, but broke out below that base, and AUD broke above it’s. When I looked at this chart, it had pushed down a decent amount already, but then stalled for a bit. On the 15 min. chart, there was a pretty clear bear rally pattern forming, so I used that as my basis for my entry and stop points.
After a few hours, though, this hadn’t moved much, and on the hourly chart, was in a low-base, which was a better pattern in my opinion, and bolstered my claim for this short play. Price, at one point did push up above where my stop level was, but I re-adjusted the numbers (as it was still in a low-base), and still liked the R:R so I set entry orders.
Entry – 1.68923
Eventually, price pushed lower and triggered me in to the trade.
| Entry Order Level |
|---|
| 1.68923 |
| Stop Loss Level |
| 1.69825 |
| Target Level |
| 1.66 |
Exit – 1.67713
This stayed in it’s range after triggering my entry, even coming close to stopping me out, but didn’t. On Friday (after one of those rallies), price pushed lower again, and was only a few pips away from my entry. Again, I trusted my analysis, so I decided to keep my trade open over the weekend. On Sunday, price dropped, and by the time I went to bed that night, had pushed low enough that I was able to move my stop to break even.
I continued to monitor the trade on Monday, and I followed my stop along the SAR on the 1 hour chart. Eventually, momentum slowed down and price reversed enough to stop me out, but for a beautiful 121 pip gain!
