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Trade Idea

EMA 5/13 broke out and cross over EMA 62 to the upside. Will we see a rebounce ? 30 mins charts seems to agree that the short term downtrend might be over. Breaking the sma200 on 30 mins exposes 1.0400 as the target. Potential 30-40 pip target. Excited!

Subsequent update:


So approximately @ 2am it finally touched down on EMA 62 and shot to the sky whilst i was deep in dreamland. However it did not reach 1.0400. 2 scenarios:

i) Since I would set stop loss below SMA200 which is about 17 pips, my typical target of 20~25 pips could have been achieved as it moved 30 pips in this rebounce. Decent R:R ratio of more than 1:1.

ii) If I was being more aggressive, I would have targeted 1.0400 and trailed my stop @ 20 pips. Eventually locking in 10 pips.

Food for thought. Exit determines a winning trade from a not so winning trade. Considering the time @ rebounce, mid NY session where liquidity is thinning, probably scenario i) would make more sense. Scenario ii) would have been more effective in a Europe/London/US session (9-11pm).

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