Trade Update - AUD/JPY Short

The Trade: AUD/JPY Short

Date: April 13 2008, 8:20pm
Entry: 93.35
Lots: 5
Stop Loss: 93.85
Target: 92.35

Reason/Setup:
This trade was signaled by the squeeze indicator on a weekly chart. Since its a weekly chart, it has greater room to move. So I entered short with a 50 pip stop and 100 pip target.


Result:
While I entered the trade as soon as the signal was given, I believe I made a mistake with the entry. From the chart, we see that while the histogram of the squeeze indicator is red, the trend has been for lower bars moving towards 0. This means that the pair has bee moving higher. This can also been seen from the price action where the past several candles have closed higher than the previous. In fact, we have 3 higher closes signaling a bottom and trend reversal. So it would have been a good time to go long on this pair.

Date: April 14 2008, 7pm
Total Pips: -250
Profit/Loss: $246.91
Rating: 3