Looking this morning at the baskets, USD had recently broken out to the upside and was still near the highs. GBP on the other hand was actually up on the day, but was up against some resistance. It wasn’t my favorite short, but I could see it pushing down off of that resistance area. I didn’t like the other short I looked at, so I looked at this chart.
On the daily chart, price was down, sitting on a support area and basing a little, and when I looked at the 1 minute/5 minute charts, price was on a rally. Remembering my top-down analysis, I looked up at the 1 hour chart, and there appeared to be a solid retest forming, so I looked for a good entry back on the 5 min. chart. Price started pushing back to the downside, so I set an entry order.
Entry – 1.141
Target – 1.138
Stop – 1.142
R:R – 3:1
Entry – 1.14099
Exit – 1.14066
Price pushed down after triggering me in, getting to near 1R relatively quickly. It kind of slowed down, and I didn’t want to lose money — as I’m actively managing the trade — so I moved my stop to break even, and then a few minutes later, moved it slightly above the resistance that had since formed. Eventually, price did push up and trigger me out, for a small profit. Essentially break even.
I think this was a good trade. I did top-down analysis, I locked in profits instead of just letting it ride and I followed my rules. Solid trade, I just need to keep making good decisions.
Price did eventually push down significantly. To and through my target. I can’t say, for sure, that I would’ve caught that move even if I had followed along the SAR. I suppose, if I had waited until a full 1R, I might’ve caught more of it, but I’m not too upset about the way it played out. This is going to happen sometimes, and other times, price won’t get high enough to stop me out early and I’ll make some huge profits. Just keep swimming.