Disclaimer: This is for me to learn a new strategy. Any feedback is appreciated. This practice for me as an assignment and not financial advice for anyone. I may be completely wrong.
Now, as I look at my daily chart. I see a within an upward channel, bullish pressure that is climbing to 0.67753. When looking at the channel, I am noticing small breakouts. I looked to higher timeframes weekly and monthly for confluence. In this pair I was stopped out last week, but I was triggered at the right place (0.65393). This broke my short bias for now. I am thinking the market may show me a slow climb then exhaustion at supply around the 0.67753, with my entry at 0.65800.
Trade active
⋅
Price did continue to the upside. My entry at 0.65800 was triggered. Price hit a supply zone at 0.6634, I did not see in my original thesis. If price can breakthrough, I may have a chance to hit the target at 0.6577. to be cautious, I set a trailing stop at -20 pips. We shall see what the market does. Right now, I am glad I was able to see price action more clearly. Nothing more.
Trade closed: stop reached
⋅
Hey everyone, As stated above, I put in a trailing stop (TS) at -20 pips. Price did continue its bullish momentum. I got stopped out at 0.66375 or about 57.4 pips. Not bad! I am trying to be as simple as possible in my trading. I will continue learning this strategy and using my trading view profile as a learning tool for myself.
This is definitely a possibility. I'm currently biased with the short term bear due to the current turmoil between China and Australia. However, long term is almost impossible to tell. From the chart i'd agree with your analysis after a bearish movement.
FinoptUSA
⋅
@hammozac, Thanks for the feedback. I was also previously short this pair as well. But since my last test trade, I feel the pair still has some momentum. Right now, there is a demand for higher-risk assets, and I agree with you that the US/China back and forth is problematic. I see Crude is rising from its previous lows, and that is a good sign. Also, this pair, from my understanding mimics the SP500, which is currently making higher lows. Like you, I am expecting a pullback, and I will be comfortable to (0.6538). I will feel more comfortable with my bias once we break past .6570, which there is consensus on from some of the articles I researched and my price chart. I am cautious about all the news coming out tomorrow (5/26/2020). I will reevaluate my thesis after the New York session. Thanks again for your feedback.