Been watching this pair since 1-Aug and already have a short position open. The move still seems valid, but price has retraced up and currently looks like it could be rejecting the 4h 200EMA and upper channel resistance.
I didn't notice the channel when I first entered the trade on the D1 chart, but it is obvious on the 4hr and 1hr charts. Waiting for bearish confirmation before entering SHORT. SL is above the 4hr 200EMA. TP at the bottom of the channel around 1.53-ish.
Trade active
⋅
A very nice evening star doji appeared on the 1h chart then price whizzed off south as hoped. Looking bearish.
Entered a SHORT position as follows...
SL: 1.5648 (-70) Entry: 1.5578 TP: 1.5333 (245)
Comment
⋅
This second, much tighter position is up 75 pips so far and has brought the over trade in to profit. The original position is actually still down 20 pips!
This is an interesting experiment in to doubling up a position and getting it at a much better R/R providing the idea is still valid. Of course there is the risk that the trade fails and then the loss is doubled, but this can be reduced by placing a smaller risk on the higher R/R trade.
Trade closed: target reached
⋅
This turned out to be a great trade! Target was easily reached, in fact, could have squeezed a further 2R out of it!
This trade taught me a lot about the importance of getting a good R/R and I've since used a similar tactic to get tighter stops on other trades with great results.
Price is now retracing back to upper resistance, but this could be the end of the corrective phase? Watch carefully.