Tuesday, March 4, 2008

EURJPY & GBPJPY scalping - 04.03.2008

Just a quick reminder of a swift SAR trade on EURJPY and GBPJPY crosses - again I didn't capitalise enough on the trades but I'd like to remember the principle underpinning the successful outcome.
*** What doesn't come up > must come down! ***
I longed both crosses at indicated on the charts with the assumption that the Support trendlines in Green would offer a very good R/R ratio as price was very close and I would reverse if they didn't hold.
As Nikkei 225 closed flat I expected crosses would gain some momentum but at 7:00 GMT London traders just took the highs and started unwinding again.
>>> Once the Support TL were breached I Reversed to short and then averaged lightly above the initial reaction prices which actually gave me a better trade location and I could exit recoupling the initila trade losses + gaining an average 20 pips on each trade.
*** Again this could have been executed much better and the EURJPY actually descended to the BLACK trendline Support where I could have enhanced the outcome. However I would like to mark the underlying principle in ana attempt to reinforce my conviction in the technical significance of broken S&R TLs.

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