Tuesday 22 November 2011

GBP/USD Candlestick Pattern trade

GBP/USD Hourly

Price rebound then stall at resistance with bearish reversal candlestick type, I think it's called morning star or i don't know, cant remember haha... Well the name is not important, if you look closely and understand how the candle stick is formed..

Sell at 1.5670, Stop loss at 1.5695 (25 pips risk)
planned to close half of my position near support, but it was just a couple pips away, before price rebound again, then I just closed half at 1.5560 for a 10 pips profit and let the remaining just in case, i was ready with my 25 pips risk..

Then there's a bearish divergent bar candle, confirming the selling pressure, Sold again at 1.5655. Moved my stop to 1.5683 (one tick above the bdb high).. So I had 1 and a half position..

Closed 2/3 of my position at 1.5615 (resistance), 40 pips profit and let the remaining profit to run..

But there's a reversal sign, false break with a railway tracks candlestick formation and a AO divergence, so I just closed it for 20 pips profit...

Wanted to trade the reversal, but the stop loss is too far for me...

Oh well until next opportunity....

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