Well after EURAUD’s stratospheric climb yesterday (it climbed faster than a Tornado F3….but that’s not really much of a compliment) it was no surprise to see it teeter at new highs, print a nice reversal pattern and then roll-over and rapidly fall back to earth (once again, very much like a Tornado F3).
My stop had been moved in line with my plan and now sat at 1.3672, 50 pips in front of my entry at 1.3622. I thought it looked vulnerable…and this time I was right. Overnight price went down touched my stop level and closed my final portion (with slippage) for a smidge under 50 pips.
So in two parts I took a total of +154 and +50 points from the position. I’ll be interested to see where EURAUD goes from here however at the end of the day I planned my trade, traded my plan and manged my risk so this was a successful trade. My one learning point was to ensure my rules for ‘jobbing’ around a position are in place and watertight. There was a great opportunity here to job around my main position and re-invest some of the profits from the 1st part of the trade into a tight reversal trade short after price hit T1. But that’s for another day.
Overall a nice trade. Until next time, trade well.
FXTraderPaul
March 14, 2011 at 7:05 pm
I found about your site on yahoo and read a few of your early posts. I hope you will continue the very good work. I just added your RSS feed to Feedburner. I’m seeing forward to reading more from you later on!