USD had broken out of more resistance this morning and still looked strong. AUD had slowly been rolling over to the downside and this morning had broken a pretty major support level and looked like it was trying to re-test that area.
I looked at this chart and on the hourly chart there was a very clear re-test happening, and it looked great. I set my entry limit order and it was triggered pretty quickly.
Entry – 0.75920
Exit – 0.76153
After triggering my entry, price never really pushed back down. It just continued to rally and rally until it pushed up and stopped me out not too long after entering.
A couple of things about this trade, too:
1) I lost more than I should have because I was analyzing a couple of pairs on a couple of different time frames — I must have gotten my wires crossed somewhere because my order size was larger than I wanted it to be. Had I won this trade, it would’ve been a bigger win than I was expecting, but I probably wouldn’t have even noticed because my gains are more unpredictable. Something I definitely need to be more conscious of in the future.
2) When I take re-test trades, I should still do stop orders to sell instead of limit orders — that way, at least I’m getting into the trade on the move back down, rather than hoping it does after it’s up-move.
