Disclaimer: Updating on 1/20
Looking at these baskets this morning, USD looked as if it had made a reversal move to the upside. NZD on the other hand had been weak for a few days in a row and had just pushed through some support. It was on it’s way back to retesting that support (now resistance) level, which I thought I could short into.
When I got to this chart, the daily chart was pushing down, but I could see a rally. On the hourly chart, it broke a nice, tight base, and was heading back up to that resistance level (that was support of the base). It wasn’t the pretties re-test in the world, but I liked that the base it broke was tight. I set a limit order which was fairly quickly filled.
Entry – 0.71802
Exit – 0.71795
After triggering my entry, price pushed up a bit more, but not much. It started to push back down pretty quickly, and soon hit 1R. I moved my stop to break even at that point, and waited to follow my rules, namely to follow the SAR with my stop for an exit.
Unfortunately, though, the SAR never had a chance to cross my entry before price reached that level stopping me out at essentially break-even.
