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Trade Management

EURUSD: Active management/A structure trade review (w/video)THIS IS NOT A TRADING IDEA, more of a recap. Earlier this week I posted a chart of the EURUSD that had three potential bearish patterns setting up in the same area. In that post I mentioned that I was also involved in a long position on the Euro. Well after 24 hours of doing absolutely nothing this pair finally decided to rally and move in my favor. Throughout the week I've gotten numerous messages about that position and since I never posted it here's a quick look at what was on my mind. Unlike advanced patterns, when I involve myself in a structure based trade I look to actively manage it. The "black flags" on the chart were potential profit taking levels for me and as price action approached them I would keep a close eye on the reaction. A positive sign would lead me to stay in the trade, while a negative sign would cause me to take my profits and fight again another day. The blue lines are an example of how i managed my stop/loss while the position was in progress. While the green flag is where I ultimately ended up taking off my final profits. Now before you yell at me about "not catching the entire move" please take a look at the video i just uploaded to my YouTube channel explaining the "Pros" and "Cons" of active management vs shooting for a static target area. www.youtube.com
Long
by Akil_Stokes
4
XAUUSD inverse H&S, break up of necklineRecently, Gold broke up above intermidiate resistance/neckline. On chart, you can see inverse Head and Shoulders pattern which usually leads to reversal of previous trend. Since Reversal candle on the 1st of January of 2015 it feels much more constructive. Nice 2 days of rally after that actionable signal. Then it broke up resistance at $1,204 which later became our new pivot support. After 3 days of rally we have small reversal candle which may lead to digestion or pullback (reason to cover some if you are long, doesn't mean short) that is healthy as gold already gained 4.5% since the beginnig of new 2015 year. First area to look for entry Long is $1,223 - break point of neckline and previous swing high. Then we have 21 EMA and bigger support at $1,204. From fundamental point of view we can see increase in demand, as wedding season takes place in many countries. India is prominent one. My first intermidiate target is $1,255. Macro target $1,300-$1,330
FX:XAUUSDLong
by andrew.berg
DAX potential short scenario on Fundamentals and TechnicalsJust days before Germany's much anticipated third quarter gross domestic product (GDP) data is released, business leaders and policy makers warn that euro zone's largest economy has lost its competitiveness and is on the brink of recession. German Stock Index DAX is grinding high for the last 3-4 weeks after a sharp down move. It is building nice consolidation and I think resolution of this chanel will give us another directional move. My bias is to the downsideas price is below 200 EMA for a long time and failed to hold above during recent sessions. Data on Friday could be a good catalyst. Break down and close below 9,200 support will trigger my short entry with stops above 1/2 of this range at 9,300 then we have 9,400 as important mark. My first target is 8,900.
INDEX:DEU40Short
by andrew.berg
1
AUDUSD: What To Do For Target Two'sObviously the bulk of this trade has already played out but following up on yesterday's blog post and this mornings training lesson. I wanted to take a look at how I actively manage a trade. One this I continue to tell the traders I work with is to "think like the other trader" so seeing how I'm in a bullish position, what I like to do is break down the chart and look for where I would want to get involved if I were on the bearish side. As you can see I've predicted 2 potential reversal zones, the first being at a zone that features inside resistance looking left along with some Fibonacci confluence (127.2 extension & 161.8 inversion). The higher level features a 161.8 extension and an equal measured harmonic move. So where is the right place to exit? Well price action will let me know. For the original idea behind the trade check out yesterday's blog post. ratiotradingmentor.com
Long
by Akil_Stokes
4
USDCAD continues upward march - how to manage your tradeI wanted to share this trade idea because its a great example of how to manage your trades once the market moves in your favor. Notice that since I got in a big hurry to get in this trade, my entry, while decent, could have been much better. If I had just waited a few more days with a nice limit order sitting on the red sliding parallel, then I would have had an outstanding entry location with an extremely small stop. Well...make a better plan next time and deal with this trade now. Now that we have formed a nice new swing low as price is climbing upward, I can move my stop upwards to the red line at 1.0905. When another swing low forms and its confirmed by taking out highs, I will move my stop up again below that. I'm also working my profit target order upwards along the upper channel as price moves to the right on the chart. Some basic info on making your trading plan and sticking to it: www.itradingforex.com
Long
by iTradingForex
3
SLB sentiment changing to bearishDuring this recent move up in S&P (100 handles from the last bottom) Oil&Gas ($XOP) stayed one of the weakest sectors and specifically shares of Slumberger. After exhausted move up on the end of June, it entered into correction and broke down its 50 EMA that was in control since the beginning of 2014. Now, sellers keep preassure and hold resistance at $110 which could be stop line for short position. My approach is active trade management. Initiate tier 1 now, then add on break down of $107.50 gap point, then add if it will close and hold below $105.39 with target at $102 - reasonable level, earlier it acted like resistance and now should act like support.
NYSE:SLBShort
by andrew.berg