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Today’s pick is a basic play. We have the NZDUSD downtrending. It’s a chart we’ve all seen plenty of times. Sometimes there’s a break to the upside to the 200 SMA then reversal, but this time I think it will go down from the 100 SMA. So with a break of the pivot and 50 SMA, I will go short for 10 pips. My stop will be 10 – 20 pips above the pivot point. My aggressive target will be the S1 line.

A possible long play is a break and candle close above the R2 line. Going for 10 pips or until it hits the 200 SMA. Set stop 10 – 20 pips below the R2 line.

A quick return to my stop loss rule…always set your stop so that it is not more than 3% – 5% of your account. In this case if it’s 10 pips above the pivot point then set it there. If you can do 20 pips, set it at 20 pips above stop.

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.