4 Hour chart
In the previous down move point A to F were the areas pre-identified where uncertainty, consolidation, waiting platforms as I call it could occur. Waiting for further direction based upon certain moving averages, price levels(1.3200 1.3100 etc). As you can see it worked out pretty well. Point A were a very strong trendline coming from 04Dec2006 and it is within the 1.3300 price level. This was a high probability short trade taken. Point B were the first fast moving average to pass and it did so without stopping. This was my first possible level of partial profit taking. Point C were a much stronger barrier as there were two MA’s to overcome. At his point I have decided beforehand to take 50% profit and to set my stoploss for the remaining 50% just above 1.3200 waiting for further direction. Point D was a price level barrier as well as the NFP news that were coming out where my stoploss was moved to midway between C and D waiting for further direction.. Point E were a 365EMA and are always a major barrier, support and or resistance. I have decided that I will take the remaining profit at or close to this MA. Point F again are a very strong trendline support area as well as a 1.3000 price level.
I planned my trade as follows.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
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I will enter a long entry as close to 1.3000 as possible. Point A(purple) are the first barrier with another fast MA close by. As the 365EMA at point A might be a very strong resistance a down move below 1.3000 is not excluded therefore a very cautious and monitored stoploss below 1.3000 must be in place. For any movement below 1.2980 might be a continuing of the downmove. As you can see the price have tested and found resistance against the 365EMA. If A is overcome than B will be next and a important MA for a pullback to occure. Take half the profit at this point and set remaining to breakeven.. Point C will be also important. Move stoploss to below closeby lows(if pullback occur). At point D I will cash in another 25% and set stop to C for remainder and let it run to E or stop hit.
Should it break downwards I will cut my losses as early as possible and based upon the new movement consider and make a new plan. As the 365EMA barrier is holding at this stage a downbreak is very much still on the cards. I am however taking the odds on based upon strong trendlines and price support around 1.3000.
This is my plan for this trade on the EurUsd. You take full responsibility yourself should you follow this.
I just think that one must have a plan and trade that plan. This is how I do it.
In the previous down move point A to F were the areas pre-identified where uncertainty, consolidation, waiting platforms as I call it could occur. Waiting for further direction based upon certain moving averages, price levels(1.3200 1.3100 etc). As you can see it worked out pretty well. Point A were a very strong trendline coming from 04Dec2006 and it is within the 1.3300 price level. This was a high probability short trade taken. Point B were the first fast moving average to pass and it did so without stopping. This was my first possible level of partial profit taking. Point C were a much stronger barrier as there were two MA’s to overcome. At his point I have decided beforehand to take 50% profit and to set my stoploss for the remaining 50% just above 1.3200 waiting for further direction. Point D was a price level barrier as well as the NFP news that were coming out where my stoploss was moved to midway between C and D waiting for further direction.. Point E were a 365EMA and are always a major barrier, support and or resistance. I have decided that I will take the remaining profit at or close to this MA. Point F again are a very strong trendline support area as well as a 1.3000 price level.
I planned my trade as follows.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o
></o>I will enter a long entry as close to 1.3000 as possible. Point A(purple) are the first barrier with another fast MA close by. As the 365EMA at point A might be a very strong resistance a down move below 1.3000 is not excluded therefore a very cautious and monitored stoploss below 1.3000 must be in place. For any movement below 1.2980 might be a continuing of the downmove. As you can see the price have tested and found resistance against the 365EMA. If A is overcome than B will be next and a important MA for a pullback to occure. Take half the profit at this point and set remaining to breakeven.. Point C will be also important. Move stoploss to below closeby lows(if pullback occur). At point D I will cash in another 25% and set stop to C for remainder and let it run to E or stop hit.
Should it break downwards I will cut my losses as early as possible and based upon the new movement consider and make a new plan. As the 365EMA barrier is holding at this stage a downbreak is very much still on the cards. I am however taking the odds on based upon strong trendlines and price support around 1.3000.
This is my plan for this trade on the EurUsd. You take full responsibility yourself should you follow this.
I just think that one must have a plan and trade that plan. This is how I do it.
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