USDZAR Letting Winner Run
Updated
I put a trade on last week for one mini lot in USD denomination. Price action is doing well on the 4 hour chart. Testing my patience, but that's where the money is made. The original position was entered when price made a higher high and tested the previous high with a higher low after the reversal price action confirmation (I missed the first entry of the first higher high and higher low).
Price broke above and closed above the previous short-term high (green line). Moving towards the downward sloping trend line, I think the more important level that we will see hesitation at is the 13.5 area where we found a double top in the past.
If you're looking to continue this trend with me, look for price to come back to the green line (13.27). It will probably take a day to make a touch and continue its run upwards. Trail your stop like I am. This is how we let our winner run.
Price broke above and closed above the previous short-term high (green line). Moving towards the downward sloping trend line, I think the more important level that we will see hesitation at is the 13.5 area where we found a double top in the past.
If you're looking to continue this trend with me, look for price to come back to the green line (13.27). It will probably take a day to make a touch and continue its run upwards. Trail your stop like I am. This is how we let our winner run.
Comment
Price dipped into the Role Reversal area of 13.2650 which is between the 2 most recent highs (one shorter-term and one longer-term) before continuing up. If the 4H candle closes to above all other recent highs, I will be mocing my SL to 13.2500.Comment
At about 7:15 this morning (central time - GMT-5) I added to the position at the role reversal area and moved my stop loss on the original entry closer to the new entry price (see image, below). FOMC pushed it higher after it dipped a little. Based on my risk level on the trade (SL in relation to account size), the second trade size was .07 lots instead of the original .1 lots.Comment
Price is testing the area I am looking for it to break (the downward sloping trend line). Without an immediate rejection, I am comfortable hypothesizing that price will break the first purple zone and trend line.
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