Price pushed through my Bollinger Bands and then retraced through the 20 MA. I am looking for price move back to the 20 on the daily time frame where I will be looking to short on a lower time frame. I plan to hold the trade until it hits the 200 MA.
I am taking advantage of my broker's leverage and how much margin is required to place the trade. In terms of AUDNZD my broker will allow me to risk 14% of my account per unit of movement. Since this is possible I will be able to place a 0.19 lot with a $10 account. This position size will give me about 6 - 7 pips before being margined out (I use this as a stop loss). At most, I will lose $10 per entry attempt but most likely will only lose about $7.50 per entry attempt due to stop out requirements put forth by my broker.
My profit target is about 300 pips away at the 200 MA. Given the position size, I will stand to make about $400.
I will make this entry attempt as long as price stays below the 20 MA and doesn't break to up or down. If a break up is made, then I will wait for price to break below the BB and 20 MA to consider an entry. If price breaks to the low, then I am no longer interested in the trade until price breaks above the 20 MA and then below it again.
Good luck to everyone.
I am taking advantage of my broker's leverage and how much margin is required to place the trade. In terms of AUDNZD my broker will allow me to risk 14% of my account per unit of movement. Since this is possible I will be able to place a 0.19 lot with a $10 account. This position size will give me about 6 - 7 pips before being margined out (I use this as a stop loss). At most, I will lose $10 per entry attempt but most likely will only lose about $7.50 per entry attempt due to stop out requirements put forth by my broker.
My profit target is about 300 pips away at the 200 MA. Given the position size, I will stand to make about $400.
I will make this entry attempt as long as price stays below the 20 MA and doesn't break to up or down. If a break up is made, then I will wait for price to break below the BB and 20 MA to consider an entry. If price breaks to the low, then I am no longer interested in the trade until price breaks above the 20 MA and then below it again.
Good luck to everyone.
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