Tuesday, July 30, 2013

USD/RUB Part 2

Started a new long position on USD/RUB after noticing the one day reversal which produced the bullish dragonfly doji pattern. The price traded to a low of 32.6701 and then reversed and rallied to 32.8718 which is when I noticed it and decide to place a trade.

Stop loss at 32.6345. First target at 33.3094 valid for 3 days.

When the price has such a turnaround as to produce such a candlestick, it tends to continue its bullish trend. And I allow myself to be proven wrong if the price falls below that candlestick. Which is where I placed my stop. The stop loss is wider this time compared to the previous round so naturally this position is smaller than the previous one, to preserve the risk taken per trade.

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