Anyone trade this kind of setup

wwatson1

wwatson1

Spotted this on USD/CAD and took a small short possition, wonder if it will work out, stop is above moving average and would be looking for a test of low, its an hourly chart, any opinions??
 

Attachments

Top trend line is looking to be stop and bottom line is where profit would look to be taken, good profit to loss but just a punt really not my main strategy :-/
 
Trend following is great if you're manually scanning for the right conditions.
This time she's moving for breakout, you have to be careful with strong trends like that, which trap 4-8 hour shorts.
 
I prefer mean reversion trades that are aligned with price momentum indications. What would be the basis for your entry short in your example?


<!-- copy and paste. Modify height and width if desired. --> <a href="http://content.screencast.com/users/COGindicator/folders/Forex/media/b2a36a53-90c3-415a-99eb-a82c661ea5be/USDCADsep20.png"><img class="embeddedObject" src="http://content.screencast.com/users/COGindicator/folders/Forex/media/b2a36a53-90c3-415a-99eb-a82c661ea5be/USDCADsep20.png" width="1214" height="641" border="0" /></a>
 
I had taken one buy USD/CAD @1.0200 level and my target was to reach 80 pips which happened for this week, not really sure about the other way round.
 
Not for nothing but you sold into a weekly trendline (bounce) on a Friday. Technically, I keep it simple on longer TF charts. Though I do watch 1hr/4hr TL's as well, in the end PA is key at these areas.
 

Attachments

You must log in or register to reply here.
Back
Top