AUDUSD Breaks Out From Sideways Congestion
Well I’m glad I didn’t take too much notice of the AUDUSD change of polarity yesterday, otherwise I would have missed out on making some pips!
When I peered at the AUDUSD on an hourly chart I saw a beautiful sideways congestion that was just begging me to trade it (resistance was around 0.7700 with support around 0.7670).
At the time I noticed the sideways congestion the AUDUSD was trading around 0.7680-85, so I decided to place a buy entry stop at 0.7665 with a stop loss at 0.7705 (40 pip stops) as well as a buy entry limit order at 0.7695 with a stop loss at 0.7710 (15 pip stops).
My buy entry stop order was hit at 0200 NY EST and as it bounced I became fearful that the market was going to go to the upside (thinking that the change of polarity WAS going to take effect), so I cancelled my buy entry limit order… after seeing how high the AUDUSD went, as well as what happened after the event I kind of wish I hadn’t of cancelled that order and had stuck to my original plan.
(The AUDUSD went as high as 0.7696 according to Oanda’s chart (which is mid-priced) meaning that the highest bid price would have been 0.7695 - my entry buy limit order would have hit it right on the head… and I’d be up 60 pips!)
Oh well, at least by recording events like this I can give my mind the experience which will help reinforce myself.
Tags: AUD USD
June 28th, 2005 at 6:43 pm
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