EURUSD DST Short – 21 Mar

Account Risk: 0.35%
Short: 1.0810
Stop: 1.0830 (20 pips! 🙂 )
Target: 1.0714, 4H 50MA (116 pips, RR 5.8x)
Mindset: Really pleased with the entry but still expecting to get stopped out again

Update 1 – Not much progress, but the daily divergence has set up – 23 Mar
Update 2 – Might be getting a double divergence! – 24 Mar
Update 3 – Got stopped out ;-( – 27 Mar

I saw this set up on the morning scan – and whilst I didn’t really want to take it – I had a really nice spot to enter on. On the daily timeframe there was also a divergence setting up (although not yet official).

The set up – 4H Chart

EURUSD 4H Chart – 21 Mar

Daily Chart

EURUSD Daily Chart – 21 Mar. Will the divergence materialise?

One thing worth noting is the proximity of the 200MA. It’s not a million miles away so may well get a move up to that.

So I put the first position on and was just about to put the second position on when my ETX quote locked/stopped quoting and I couldn’t place my second position for about 10 seconds. When it came back again the price had moved about 10 pips so I waited for price to come back to me but it just kept falling away.

Sell quote locked. Came back 10 pips lower.

I decided to wait but price didn’t come back so I closed the window. There are other set ups forming on other Euro pairs, so for now I’ll sit tight.

Update – Not much progress, but the daily divergence has set up – 23 Mar

EURUSD Daily Chart – 23 Mar. The divergence set up.

Small update the daily chart is now diverging and I’m unsure about what to do next. The daily 50MA is a nice distance away so I feel I should switch my target to that from the 4H 50MA. However, The 4H 50MA hasn’t been tested yet (according to my charts) it had an air kiss.

At the moment I’m sticking with the 4H 50. (I think mentor Charlie would go for the daily 50). I really wish I had those two positions now so I could target both!

For now I’m going to play safe, price action hasn’t been great. I can see myself getting stopped out of this trade and having to re-enter. Price is also hand-railing the 4H 20 so maybe we’ll get a blow-out to the downside?

EURUSD 4H Chart – 23 Mar.

Update – Might be getting a double divergence! – 24 Mar

EURUSD 4H Chart – 24 Mar. Double divergence forming?

Just noted that price has moved up this morning against my position but I just wonder if we’ll get a double divergence setting up!?

Hmmm I wonder

If we do, I’ll be switching the next target to the 4h 100 which is very near the daily 50. Could be a tasty entry, we’ll see.

Update – got stopped out – 27 Mar

The Euro gapped up over the weekend and continued higher. I was stopped out of the position as the market opened on Sunday night. My first experience of getting gapped over my stop.

Wasn’t great – but I’m glad I didn’t get put off shorting again (even though I got stopped out again on my EURCAD trade!)

EURUSD 4H Chart – 26 Mar. Gapped and stopped out.

Will wait and see if I get another entry on this.

Leave a Reply

Your email address will not be published. Required fields are marked *