Trade Update - GBP/USD Short

The Trade: GBP/USD Short

Date: April 14 2008, 10:10am
Entry: 1.97962
Lots: 10
Stop Loss: 1.98222
Target: 1.97662

Reason/Setup:
I entered this trade primarily based on the OzFX setup on 1 hour charts. Since I was entering the trade on a lower time frame, I have to make sure the trend is still present and strong. Hence I enter the trade in the middle of the trend instead of trying to pick the top and bottom.

From the chart, I entered the trade at the 5th down candle. By this time, there were multiple red bars on the AC and AO indicators. The stoch was moving down and the lines were wide apart signifying that there is not going to be an upside rally.



Result:
I did make the same mistake as the previous trade to place the stop loss based on the 15 minute chart. The stop was placed about 5 pips above the 34 SMA. But the stop was still close to 30 pips away from my entry point providing me some leeway. And I was also lucky with this pair that the price never reversed.

Date: April 14 2008, 11:10am
Total Pips: +300
Profit/Loss: $300
Rating: 4

I give this trade a 4 rating since the placement of stop was not ideal. Had the price moved like the other pair did, I could have been stopped out and missed out on a good move.