Our alert on this pair went off today and presents a nice short opportunity! We always want to first make sure that the position we are taking is not highly correlated with our other positions. Once all of that checks out, we should be good to execute. In this case we have a nice 4 to 1 risk reward setup. We want to set a limit order near resistance and wait for price to hit our order. Hopefully we get filled. I will update when/if we get a fill. Remember, keep your positions size and risk within your personal risk tolerance parameters. I recommend no more than 1 or 2% risk per trade. Happy trading!
Trade Parameters:
Sell Limit: 5.80310
SL: 5.90060
TP: 5.39990
Trade Parameters:
Sell Limit: 5.80310
SL: 5.90060
TP: 5.39990
Comment:
Let's update this entry. Currently, the price is stalling around resistance, but has not filled our limit order yet. We have an option here. Let's place a sell stop entry right around 5.74246 and a SL order around 5.80685. Our TP will remain the same. This will adjust our RR up to 5:1. Hopefully price breaks down, fills our order and continues in our direction. It is a more aggressive entry, but gives us a better risk to reward.
Order cancelled:
Our sell stop order didn't get filled. Seems we would have been better off sticking to the limit order. We can wait to see if we get another sell signal otherwise we will need to find other opportunity.