$EURUSD Initial profit take target at 1.4280

The unrealized profit of my EURUSD short position briefly went over 5% of the capital on Friday session. Undisciplined trader would have already started to fear of potential reversal, but I am just sitting tight towards my initial profit taking level. All I did was to move my stops to 1.4450.

In the chart, it is clear that EURUSD marked blue underline iii at 1.4330, exactly I had anticipated in the previous post. (I changed the label from 3 to iii, it was my mistake.)

20100115-eurusd-60min

So, my confident level on the analysis is still held high, and I believe the current rebound is the initial wave of blue underlined iv corrective wave.

After the correction, I am seeing two fibonacci support levels almost coincides, and a trend line support is passing through. So, this is most likely where the blue v (= black 3) stops. The price level is 1.4260 to 1.4290. Also note, as I showed with a purple arrow, at this price level, EURUSD would have traveled the same distance as the purple .1 wave. So I am planning to take the profit of one half of my positions here.

Using 1.4290 as the reference level, I measured the descent from 1.4580. 50% retracement is at 1.4434, which is just below blue underlined i. This is how I came up with my new loss cut line that I mentioned at the beginning of this post.

After black 3, I would expect the corrective wave of black 4 (most likely to be complex wave), and it should carry EURUSD up to 1.4400. I will observe this wave carefully, and if it will act as I am expecting, I will consider selling more EURUSD before the final descent towards black 5.

This is all for the analysis now, and let me make one announcement. (Click the image below)

Make money and give back for a good cause!

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Current risk exposure:

"","","","","$29,058.30","","","","","","","","","","","","","","","","","","","","41.95%","","","2.00%","","","","","","","","","","","","","","","","","","","","","","","","","","","",""
Rational Move always use stop loss orders, and this is the worse case potential loss over the capital for the currently open positions. This is unrealized loss is less or equal to the risk exposure.

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This is a normalized value: the return on each trade is normalized against the capital just before the trade execution. This way, it is eliminating the effect by the capital change from deposits and withdrawals. The calculation thus reflects the trading performance of each trade. The value does not contain unrealized profits and losses. RM's trading strategy never risks more than 5% of the present capital. Not including subtraction by tax.

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