Wednesday, October 29, 2014

Cadchf Escape Route

Trade management is one of the essentials of profitable trading. This is an art that has been mastered by the masters in the business of speculation, trading and forecasting of financial instrument. 

A profitable traders gets along with the trade and take quality unbiased and unemotional decisions along the way.

I posted an analysis of cadchf yesterday, 28th October, when I forecast the long term and short term of this currency pair. You can read the analysis again.

I opted for a short position and presently price has consolidated upward since then. Well I have my trade management in place. I deem it fit to post here because someone could have taken the same decision. 

Am I getting out of the short position?  NO!. 

The bears still have a good chance; the recent bullish triangle formed on the intra day charts could just be the second wave of the expected 5-wave impulsive move downside to complete the B leg of the probable zigzag correction I discussed yesterday and this will hold if price does not break above the first wave.

I expect price to dip from the current level to the zones I highlighted.

Conversely, if price broke the triangle upside, I may exit my short position as market could be on its way to form an intraday impulsive move downside according to the chart below

More update to come later as price show us where it's heading to.

I maintain a bearish short term bias and a bullish long term bias until price proves me wrong.
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