25 January 2013

GBP/USD : Short on Daily Double Top

  • Recall the big 4th wave triangle on the monthly chart.
  • Trading rhythm seemingly in my favor, so allowing myself some liberty to be adventurous.
  • Weekly : Smack in the middle of triangle. No trade yet.
  • Daily : Big double top formation. Top appx 1.6300, NL at 1.5825. Trying to break the NL now.
  • Trade : Have initiated short @ 1.5806 on the DT assumption. Entry based on short term criteria so am expecting to be proven wrong very quickly if trade is a bad one. Not one to agonize over. 
  • BUT... if the DT is correct, this could put me into the weekly/monthly triangle breakout trade early ie at a much better entry level than possible if I had waited for the breakout. On way to DT downside objective at 1.5300, we would have broken the triangle support at 1.5600 so this has potential to cascade into something much bigger.
  • From a portfolio point of view, shorting cable makes sense, given my large Growth Recovery positions elsewhere (long rates, long EUR/USD, long S&P).

4 comments:

Taichiseal said...

-1.5747

Average in rate now is 1.5789

Taichiseal said...

Squared 40% of short @ +1.5688

Taichiseal said...

-1.5738

Taichiseal said...

Stopped out. +1.5828