Manage your Trades

Good evening Dynamic Traders,

Welcome Richard to the bloggers group, and I hope you enjoy it as much as I know the rest of us do.

Tonight I thought I would review the NZDUSD in order to emphasise the importance of managing your trades.

On Monday evenings blog, the NZDUSD was suggested as a possible shorting opportunity and duely gave us a good profit. So as not to hand this back to the market make sure you manage it in accordance with you trading plan but still giving it room to breathe. Having said that my take on this cross at present is that after the good move down we are in a consolidation state while it recoups.

The longer and intermediate term trends are still in a downtrend and the daily chart is showing Stochastics looking like it is about to cross down and RSI is below 50, but dont try and second guess the market.

If you now go to the 4 hour chart below, you will see that the consolidation is looking like a possible bearish flag formation and during you doing your own analysis you will see that a good fib cluster lies below at a fib reversal area, and in proximity to the figure.

I am not saying that price will go to here but am waitng for the confluences to happen to strengthen my thoughts and will then take the trade if they happen.

Charts courtesy of TradeStation.

Always enjoy your trading.

Clayton Farnworth.