NZDUSD Daily Short

  • Thanks for visiting!

    Welcome to the inside of my trading brain. I built this forum so that I could jot down my thoughts as I take trades, as well as being able to add follow-ups for further analysis.

    Feel free to post your own thoughts or comments, I just ask that you keep it real and friendly at all times, cheers!
Status
Not open for further replies.

pdr

Still have my trading 'L' Plates
Staff member
As usual, the chart at the time of entry first.

NZDUSD_2018_01_17_22-27-50.png

I hedged my bets here...translation...I wasn't really sure which way to go. I'll explain more after I draw on the chart...

NZDUSD_Forum_1.png

Initially, I thought this trade might hit resistance and then retrace to the downside. Then I second guessed myself and saw the likelihood of a slight decline in price and then a final rally. So I put in an OCO (One Cancels Other) Order so that I could go to sleep and hopefully catch the move. The next chart shows what eventuated.

NZDUSD_Forum_2.png

As you can see the long trade eventuated, cancelling out the short trade. Price receded but rallied in the afternoon. Will be interesting to see how this plays out over the next while.
 

pdr

Still have my trading 'L' Plates
Staff member
Quick update on this trade: One of the things I tend to struggle with from time to time is the news. Do I pay attention to the news, or do I ignore the news in favour of spending less time in front of the charts?

I'm pretty sure the average trader will tell you to watch out for news. And if the average trader says watch out for the news, then I am probably likely to do the exact opposite. :D

As you can see below price had a decent spike up on news, but this quickly reversed turning the candle into a 'shooting star' (sometimes referred to as a 'falling star' signifying a reversal of the instruments price).

Having seen this candlestick pattern, I moved my Stop Loss (SL) to just below break even, which was taken out shortly thereafter for a very small loss.

NZDUSD_Forum_4.png
 
Status
Not open for further replies.