Sunday, May 17, 2009

EUR/USD: Standing Aside


I got out before target on last trade and it cost me 10 pips. I became fearful of a reversal when I noticed the bullish divergence (price made new low, stochastics failed to make new low) developing in stochastics M30 (see chart). Since I broke one of my rules I did visit the accountability terminal located on this blog. Price did reverse back to 1.3488 only to go right to my target. I am standing aside for now. I want to see a break and retest of the 1.3436 level (white horizontal line depicted on chart) before i go short again. I would also like to see stochastics finish bull cycle on H4 and M30.

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