Stalking USDSGD Long
Our job as traders is to scan the markets until we find a valid trade setup according to our strategies. We then enter the trade according to our rules and manage our risk while we are in the position. Depending on where our stop loss and profit target levels are we then exit the trade with either a profit or a loss (yes all traders have to learn to takes losses, it's just part of the business) and then repeat the process in search of the next trade.
So starting at the top, we have had a good look through the markets today and noticed that a number of USD pairs have had pullbacks on the Daily charts which we see as healthy for the trends to continue. If we take a look at the USDSGD Daily chart below you will see that price has had a pullback into the 10 and 20 period moving averages which we call the buy zone. As you can see all the way up through this trend we have moved up, pulled back into this zone and then continued higher. What we also have is yesterdays daily candle has closed as a small bullish candle in this buy zone. This and many other factors make up one of our trading strategies called the Trend Flow strategy.
If price was to break through the high of the daily trigger candle our strategy would have us enter long with a stop below the swing low. We would then manage the trade according to our strategy rules and exit at our target level or our stop loss level, whichever comes first. Whether the trade ends up making money or not doesn't matter, in our opinion it was a trade worth taking as it met our essential strategy rules. We need to focus on the area of trading which we have control over. That would be selecting which trades to take and then placing our entry, target and stop loss orders in the right place with the right position sizing. Once all of that is done and the trade is entered, we hand over the outcome of the trade to the market. That's it, it's that simple.
Be sure to keep this FX pair on your watch list over the coming days as in our opinion it does look set for a move higher.
Happy Trading!
Regards,
The TWP Team
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