AJ Trade Analysis Contd.

In the previous video post I talk about the AUDJPY TAYJ trade and how you could have protected yourself by moving the stop loss to break even. In my book the 10XROI System I also talk about the trade-off you make when you move your stop-loss before the first major pull-back.

This trade off is beautifully illustrated in this trade as price pulls back from the bounce at weekly support and tries to re-test the broken 4 hr trend line. If  the stop-loss was not moved to break-even the trade would have been protected, however the risk is that of being taken out completely. The answer is that in a high momentum move with a lot of running room such as the moving average set-up there is no need to move to break even until after the first large pull-back but in a more compressed situation such as this monthly triangle it is best to err on the side of caution.


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