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    EUR/GBP- Sell *Trade Closed -1.0 R:R*

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    fxtrades

    Posts : 119
    Join date : 2010-05-18

    EUR/GBP- Sell *Trade Closed -1.0 R:R*

    Post  fxtrades on Thu Feb 24, 2011 2:25 pm

    Below is an hourly chart of EUR/GBP.

    Reason for trade: Trading short off daily 0.8529 level. Entry was taken just short of the S/R level (in green) at the first hourly pin following the sharp hourly rise. Unfortunately this pin was not the top and hopefully the following bars have been! I had my stop above the S/R level rather than the pin at 0.8533, therefore avoided being taken out.

    First red line is entry price. Second red line is first target for 1/2 fill or stop to BE.

    Entry 0.8509.

    This trade raises many questions:

    1) Should I have set a sell order at the 0.8529 level instead of waiting for confirmation? If so what stop would you use?

    2) If price does not quite reach an S/R level, should an entry be taken if a reversal pattern (pin etc) is seen before a level is reached if we are very close?

    3) What action should we take if we get to next near term S/R level for 1:1 R:R?

    1 - Do nothing and aim for next S/R level?
    2 - Move stop to BE and continue trade to next S/R level?
    3 - Close half position for a risk free trade and aim for next S/R level.
    4 - Close half position and move stop to BE?
    5 - None of the above?? Smile

    Any thoughts appreciated!





    Last edited by fxtrades on Tue Mar 01, 2011 6:13 am; edited 1 time in total

    fxtrades

    Posts : 119
    Join date : 2010-05-18

    Re: EUR/GBP- Sell *Trade Closed -1.0 R:R*

    Post  fxtrades on Tue Mar 01, 2011 6:12 am

    All these questions above still hold true, however were irrelevant for this trade as I was shortly stopped out for -1 R:R.

    Again this is a prime example of how entering on a touch of the SR would have meant a stop to break even or even a partial close out could have been taken at +25 pips.


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