This is a selling opportunity as we anticipate the market finding resistance at some point and reversing back to the downside. There are three different approaches we can use to identify our entry at this point. One would be to sell as close to the .82737 high as possible while using that high for our protective buy stop after entry. The second would be to use a technical indicator to note changing momentum from up to down for entry. The third would be to just sell on a move down through the .80667 low. All three are fine and the choice is really a matter of personal preference. But no matter what approach you use, you still have to make sure that you make more when you are right than you lose when you are wrong. That means to use at least a 1:2 risk:reward ratio on all trades. If you risk 100 pips, look for at least 200 pips in profit as it is the money management used on the solid trading opportunities that can result in a trader being consistently profitable.
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