2016-05-09_18-34-04eurusd daily

Dear all,

I took a trade a short one on the eurusd daily chart.

The reasonning was the upper wick of the candle that touched the upper yellow zone that may be defined as resistance.

Now if you also took the trade you may want to trail your stop loss.

Stochastic is still coming down and now the new area of concern would be to see if price is able to break the area of 1.13000 to 1.13600 which is support.

Todays candle was or had just a small move but I like that price is trying to close at the lower end of todays move.

Now you may ask should you take your pips or try to let the trade run.

For that I look at the gold chart which is positive correlated to the euro or inversely correlated to the usd.

2016-05-09_18-49-52gold daily

This chart looks a lot more bearish with price coming down with more vigor.

Therefore I am inclined of letting my trade run and not so much concerned anymore since the stop loss is already at breakeven.

Another chart you might use is the usdchf which is negatively correlated with the eurusd chart.

Like this you are using three charts that might provide you with some clues.

Wishing you the BEST OF PIPS

2 thoughts on “Trade Management”

  1. Ryan Gandalf van Jaarsveld says:

    Thank you Nuno – I like to focus on trading GBPUSD, USDJPY and GBPJPY. What are your thoughts on the correlation of GBPJPY with USDJPY and GBPUSD?

  2. Jim Reddihough says:

    Thanks Nuno

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