Paper trade: Covered NZD/USD @ 0.74302 (-60 pips) and AUD/USD @ 0.90917 (-88 pips)

Got stopped out of both my NZD/USD and AUD/USD shorts around lunch time. The big mistake in both of these trades is that I shorted them while they're making new highs. As written on my 3 rules, never catch the top/bottom. At the time of entry, I was looking too far back into the charts for the resistance levels. In NZD/USD's case, it was January 2008 (Fig. 1) and for AUD/USD, I was looking at April 2008 (Fig. 3). It's not that they aren't important levels, but recent momentum (Fig. 2 and 4) takes precedence over some price level over a year old. A lesson to remember is that recent memory is always fresher than older ones. If I'm to extrapolate from older price levels, assume a lower probability and manage the risk accordingly.

[caption id="" align="aligncenter" width="580" caption="NZD/USD"][NZD/USD]1[/caption] [caption id="" align="aligncenter" width="580" caption="NZD/USD, 3-hour"][NZD/USD,
3-hour]NZD/USD, 3-hour[/caption] [caption id="" align="aligncenter" width="580" caption="AUD/USD"][AUD/USD]2[/caption] [caption id="" align="aligncenter" width="580" caption="AUD/USD, 3-hour"][AUD/USD, 3-hour]AUD/USD, 3-hour[/caption]