I took of half of my position for 175 pips at the of AD and left the other half running with an automatic take profit at the of AD, after moving my SL to a profit protection point. The trade is currently a management of profit and my remaining position ran 215 pips after retracing a bit from a lower point. After reviewing the past week, I spotted a potential follow up trade, using stemming from this formation and I defined a new trade candidate for my watch list. For reference I will attach the original chart as posted by me to the chat room and for the purpose of this publication I redrew it slightly to make certain appear more clearly.
Price has been trading in a 330 pip wide for 74 days and tested both the upper and the lower 4 times respectively. This became evident by expanding the lines going through B-D and A-C. I have decided to change the TP2 of the current, open trade and am now looking to exit as price touches the lower channel line (assuming it will continue down). If it wont go down there is no problem as the market will simply take me out of the trade by hitting the trailing profit protection point. If however it does touch the lower , I will watch for signs of reversal and enter long, essentially buying the low in a . Be aware that the Greek situation will keep this pair volatile and Monday Eurogroup meetings are planned.
I have marked two profit targets for the new trade candidate. TP1 = just below a at 0.7312 and TP2 = where price touches a going through X-D. SL goes outside the channel, 20 pips below a daily from 2007 at 0.7116.
There are 285 pips on the line and the trade has a reward – risk ratio of 3.6!
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