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Tuesday, March 31, 2015

EURCAD - Range Trade

D was in a downtrend, but in a range with traps above and below.
240 shows the range. I was keying off of the blast up on Friday. After that it consolidated at the highs for 2 days and suggested a breakout could occur.
60 pb to 50% with a vol increase.
5 made a reversal with test flag. I bought the resistance break and saw the mkt quickly advance.


60 shows I targeted the trap highs.
5 shows vol increasing at the resistance highs.


Despite the ease my trade worked I resisted going for more pips.  That decision saved me because BB slammed EURCAD right after I exited.  60 and 5 make my exit look lucky, but all I was doing was following the plan - enter at support and target the highs. The hard rejection at resistance shown on 240 and D suggests the overall downtrend is regaining control.


Summary: A simple +2R win in a range. Ranges lack the momentum of trends, but are good in their own way as long as I play the boundaries correctly.

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