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Shorting in the Direction of the Daily Trend off of Trendline Resistance

Shorting in the Direction of the Daily Trend off of Trendline Resistance

Richard Krivo, Trading Instructor

Instructor's Response:

 
 
Don't be too hard on yourself.  Everything looks fine...good work.
 
chart 4 7 10
 
This EURUSD pair is in a downtrend so we would only be looking to sell the pair...just as you did.  As the pair retraced to your accurately drawn trendline resistance, shorting the pair at that point back in the direction of the Daily trend is the higher probability way to trade.
 
The stop is 50 pips above the entry and the limit is 100 pips below the entry for a 1:2 Risk Reward Ratio...well done all around.
 
 
 

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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