LT Partial Profit Taking: EURUSD & CADJPY
The trades of these examples were triggered/executed solely based on long-term (Daily) price action vs. natural support/resistance levels. Both were managed the exact same way from the beginning what resulted in a sum of 3R partial profit taken.
Failed EUR/USD Daily long term trade with partial profit taken:
- 24 Jan daily bearish close below support and the 25 Jan spinning top formation at the support 1.0742
- A sell order filled at 1.0742 the next day with any initial stop at 1.0773 (31 pips) with a Breakeven target at 1.0690 and a partial profit taking target at 1.0650. Price hit the Breakeven target the same day.
- 30 Jan price hit the partial profit taking target and half of the position was closed with a profit of 1.5R (92 pips)
- 31 Jan price started to move against the position and hit the stop at breakeven at 1.0742.
- High probability of a quick sharp reversal occured after CAD/JPY moved straight 3/8 up between Point 1 and Point 2 in a short three day period – up to a very strong natural level of 87.50.
- 27 Jan shooting star/doji triggered/confirmed the reversal at 87.50
- 30 Jan entry order placed and filled after the market open on Sunday evening with an initial stop at 87.89 and a Breakeven Target at 86.00 and a Partial Profit Taking Target at 86.33.
- Next day 31 Jan price hit the partial profit taking target at 86.33 – realized profit 1.5R (117 pips)