When doing RSW this morning, I didn’t see much that I loved. I did it absent of any risk sentiment because A) I feel like I’ve been less successful when paying attention to that and B) The correlations weren’t really holding up anyway.
USD was sitting on some support, but had pushed through a couple of major levels over the previous couple of days. JPY, despite weakness in equities a couple of the previous days, was up for the 3rd day in a row. When I looked at this chart, on the daily time frame, it was sitting on support from back in March, and the next level was quite a ways away. Unfortunately, though, when I first looked at it, it was in a bear rally but the rally was larger than I’d like.
Later on in the day, though, price pushed to a slightly new low on the day, and again bear rallied, but this was a smaller rally, up to the previous support level (that acted as resistance for that rally). At those levels the R:R was above 3, which looked amazing so I placed entry orders.
Entry – 105.069
Not long after setting my entry order, price pushed down again, triggering me into the trade.
| Entry Order Level |
|---|
| 105.069 |
| Stop Loss Level |
| 105.26 |
| Target Level |
| 104.50 |
Exit – 105.146
Shortly after entering the trade, I had to use the bathroom. When I got back from the bathroom, I saw that price had pushed down, hit 1R, but was sitting above my entry point — Had I been sitting here, this would’ve been a break even trade. Since it had made a move that would’ve made me move my stop to break even, I was comfortable lowering it once I got back.
Price had rallied a bit, but was still below the resistance level for the second bear rally (the one that I entered on). That level was also right near the 20 MA, which is another good place to trail stop orders, so I moved my stop to roughly that area. Unfortunately, though, after that, price basically based right around my entry point before pushing up again to stop me out. Unfortunately it was a losing trade, but fortunately I only lost 8 pips rather than 16+ pips.
