Trade Idea: 2012-11-26 23:30
As you can see, a very clear bullish flag has formed on Cable’s 4-hour chart. Bullish flags are usually considered as continuation patterns. After a strong move up, price stalls and consolidates as buyers take a moment to catch their breaths before staging another bullish rally.
Given this, and the overall medium-term uptrend, I’m thinking of jumping in long once price closes above the most recent high. I’ve set a buy stop order at 1.6060 with a profit target yet to be determined. As for my stop, I’ve set a 70-pip trailing stop, which is roughly equal to Cable’s 20-day Daily Average True Range (ATR).
On the fundamental side of things, the revised GDP report for Q3 2012 will be released later. I don’t know if we’ll see any upward revision from the initial reading. However, I want to be ready should that happen.
To recap, here are the details of my trade:
Wish me luck?