Sunday, February 10, 2013

NZDUSD buy punch formation

NZDUSD trades with the decreasing volatility last days. The volatility may increase soon and the resistance (last maximum) at 0.8388 will be punched. Let's put pending sell order 1 point higher the resistance level.
We can use 161.8, 261.8 and 423.6 Fibonacco levels as Take profits and the support (last minimum) level as Stop loss.

As we reach each Fibonacci level close the 1/3 of the order amount and move the Stop loss at the previous Fibo level. For example as we reach 161.8 Fibo level close 1/3 of the order amount and move Stop loss to 100 Fibo level (i.e. entry price level).

BUY STOP order

My entry price: 0.8389
My take profit 1: 0.8419
My take profit 2: 0.8469
My take profit 3: 0.8550
My stop loss: 0.8337

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