Paper trade: Long USD/CAD 25% @ 1.02988, stop 1.02080

This log is written about 18 hours after the entry. I entered long USD/CAD at the market last night for a 1/4 position size. USD/CAD took a brief run up of about 100 pips. Naturally, I moved the stop to just above breakeven to make this a risk-free trade for over the weekend. I entered this position for the following reasons:

  1. Strong support at 1.0300, Fig. 1.
  2. Positive divergence of lower low, higher RSI since August.
  3. Break of short-term resistance, see Fig. 2

Note that both Figures were taken at the time of entry 18 hours ago. Position size: 25% Entry: 1.02988 Stop: 1.02080 Target: 1.0550, although 1.0400 might be hard to break. Reward / Risk = 251.2 / 90.8 = 2.7 \< 3. That's why I'm only entering a 1/4 position to test the water.

[caption id="" align="aligncenter" width="580" caption="USD/CAD"][USD/CAD]USD/CAD[/caption] [caption id="" align="aligncenter" width="580" caption="USD/CAD, 3-hour"][USD/CAD,
3-hour]USD/CAD, 3-hour[/caption]