Good Morning all (Its 12AM in New York). Short entry entered based off of the daily candlestick patterns formed at resistance showing lack of strength left in the bull run for the short term. So for the time being it has offered a short term swing trading opportunity. A break below current support @ 1.1337 confirms the probability of a successful trade.
The Trade:
Short Entered @1.1366
Stop-Loss @ 1.1425 risking 58 pips.
Short Covering @ 1.1250 for 118 pips
2nd Short Cover @ 1.1176 for 190 pips.
Notice how I usually place profit targets slightly above/below support/resistance areas and not exactly on them. Why? Because the odds of getting filled for slightly less pips is much greater. I rather get filled vs. have my profit target missed by a couple pips and covering the position for much much less. In other words, I don't get greedy over a couple pips. Depending on price action after the first profit target is reached I make a decision on whether to move stops to break even or to keep them as is.
Good Luck and happy trading!
Daily Chart:
The Trade:
Short Entered @1.1366
Stop-Loss @ 1.1425 risking 58 pips.
Short Covering @ 1.1250 for 118 pips
2nd Short Cover @ 1.1176 for 190 pips.
Notice how I usually place profit targets slightly above/below support/resistance areas and not exactly on them. Why? Because the odds of getting filled for slightly less pips is much greater. I rather get filled vs. have my profit target missed by a couple pips and covering the position for much much less. In other words, I don't get greedy over a couple pips. Depending on price action after the first profit target is reached I make a decision on whether to move stops to break even or to keep them as is.
Good Luck and happy trading!
Daily Chart: