AUS/USD was resilient in breaking below 1.0350 as per my previous analysis. Hence I have changed my bias to bullish for short-term until clear bear signals are received from the market.
Took first long @ 1.0367 (#1) with stop loss at 1.0317 when the price was nearing previous support on two earlier occasions. Set the initial target at recent high of 1.0420 (#2)to close half the position, which is eventually hit.
Later, the price retrace and I opened another lot long at 1.0397 (#3) with stop loss at 1.0350 (below recent low). Set the target of 1.0430 (recent high) (#4) to close half the position of this lot and it is eventually hit.
Now, I have moved the stoploss to 1.0367 (below recent low)
Waiting for pullback to re-enter into long....
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23 Jan 2012
The price has broken through resistance. My final target is at 1.0650 (short of 1.0700).
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24 Jan 2012
When the price moved up... I moved the stop loss to 1.0447 below recent low.
Profit/Loss: +50 pips
Retrospection
When I look at the price, I gave more than 100 pips profit back to market.
The question needs to be asked what could I have done to maximize the profit.
When we see 1hr chart, we see a steep uptrend trendline
As per trading rules of a trendline at http://karunakarp.blogspot.com/2012/01/trends.html,
The angle between a trendline and the horizontal axis reflects the emotional intensity of the dominant market crowd. The shallow trendline is likely to last longer.
Sometimes prices accelerate away from trendline. Then you can draw a new, steeper trendline. It shows that a trend is speeding up, becoming unsustainable. When you draw a new steeper trendline, tighten your stop, place it immediately below latest trendline and adjust that stop every new bar. The breaking of a steep trendline is usually followed by a sharp reversal.
I could have noticed and followed and could have maximized the profit.
23 Jan 2012
The price has broken through resistance. My final target is at 1.0650 (short of 1.0700).
24 Jan 2012
When the price moved up... I moved the stop loss to 1.0447 below recent low.
Profit/Loss: +50 pips
Retrospection
When I look at the price, I gave more than 100 pips profit back to market.
The question needs to be asked what could I have done to maximize the profit.
When we see 1hr chart, we see a steep uptrend trendline
As per trading rules of a trendline at http://karunakarp.blogspot.com/2012/01/trends.html,
The angle between a trendline and the horizontal axis reflects the emotional intensity of the dominant market crowd. The shallow trendline is likely to last longer.
Sometimes prices accelerate away from trendline. Then you can draw a new, steeper trendline. It shows that a trend is speeding up, becoming unsustainable. When you draw a new steeper trendline, tighten your stop, place it immediately below latest trendline and adjust that stop every new bar. The breaking of a steep trendline is usually followed by a sharp reversal.
I could have noticed and followed and could have maximized the profit.
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