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aud usd short setup followthrough

01/19/2011

a friend was asking me what setup I like – and that kind of depends on what the pair is doing.

For the aud short trade, there were a few good possible entries. Chart 1 shows the first entry being a front run of the .618 retracement. (which I missed, but kudos to those who didn’t) entry two is of a 5/50 ma crossover on the 15 min chart – which I also didn’t use here 1 because I didn’t see it in time, but also because the downside potential to the trendchannel isn’t a very good risk reward setup in my opinion.

So, once the hour broke the trendchannel and illustrated support level, that was the best entry. Stop is clearly defined above the trendchannel and downside target is to the .382 retracement / 100 hr ma area. See below. This is a short term counter trend trade so I took it very very light. But still, not a bad move.

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From → Trades

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