This is by far one of my favorite types of trades, 02/11/2016. If you believe that trading with the trend is important, you will love this trade. Also, as I mentioned on Forex Money Management Tips, I am big about entering at the right time.
What really drew me to take this trade was essentially the downward trend line with 3 touches and the way the price action was acting around the line when it came up for the fourth time. At this point, I double checked the long term trend and upcoming announcements. Once I decided to jump in I sold half my regular pip amount at market, then set a sell limit exactly at the trend line.
NZD/USD – Lower Highs and Lows
This worked like a charm, the half size trade closed for 15 pips and the full sized sell limit trade closed for 55 pips. The logic to keep in mind is: a lower high and a lower low are good signs on a downward trend.
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