EURCAD Short - 15 March 2017
Updated
Background:
- Currently price is in a rectangular consolidation trading below 200MA
- Bearish reversal candle/shooting star formed on 13 March after testing 200MA resistance and support turned resistance area @ 1.436
- Also there is a minor bearish divergence formed at that area
Entry:
- 20pips Sell stop below the 2nd shooting star low on 14 March 2017 @ 1.427
SL:
- Placed 20pips above the high of the bearish reversal shooting star @ 1.446
TP:
- Placed at the bottom of the rectangular support area @ 1.37
- Currently price is in a rectangular consolidation trading below 200MA
- Bearish reversal candle/shooting star formed on 13 March after testing 200MA resistance and support turned resistance area @ 1.436
- Also there is a minor bearish divergence formed at that area
Entry:
- 20pips Sell stop below the 2nd shooting star low on 14 March 2017 @ 1.427
SL:
- Placed 20pips above the high of the bearish reversal shooting star @ 1.446
TP:
- Placed at the bottom of the rectangular support area @ 1.37
Trade active
Updates - 18 March 2017:- Price is up towards the end of the week and now still hovering around the 200MA resistance and 1.440 horizontal resistance area
- Things might not look good now, but i will hold on to this trade and only make my next step depending on the future price action at the area.
Trade closed: stop reached
Updates - 26 March 2017:- Trade stopped out at SL point
- Probably a premature entry with the minor bearish divergence. Maybe i pushed the bearish divergence too much as 7 March does not really formed a swing high
- However, a possible bearish divergence formed after breaking out of the 200MA resistance.
Lesson learned:
- Probably an avoidable trade if i have check before entry on the bearish divergence formation.
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