Kiwis are a short bird

Hello traders,

Just wanted to post about something that doesn't happen as often as it should to me: A successful trade!

Most of my successful trades in currencies have happened using a 4 hour chart with the 200 period MA as a trend filter. Simple right?

I have actually found that the less indicators I use, the more successful trades I have ended up bagging.

Here's the setup for my short NZD/USD trade:

I noticed that the 200 period moving average has shown that the NZD though with some volatility has been trending downward, making lower highs and lower lows. I decided to enter when after testing the 200 MA price action dropped below, and a red candle followed in the next four hour period. When this first red candle closed (2AM EST) I went short 2 lots. T1 was based on risk of 30 pips for the first lot, and T2 was 60 pips or twice the risk.

After T1 was hit (5:47 AM EST) the stop on the second lot was moved to break even.

 

T2 followed shortly thereafter (6:07AM EST) for 90 total pips.

I don't normally go short high interest currencies, but I decided to hop on this setup, and I'm glad I did.

Good luck trading in the new year,
STT