Followup 1 – BEOB AUD/USD 11/15/12

This is a followup to yesterday’s post. Look at what happened to the Bearish Outside Bar (BEOB). Price broke through the bar and then retraced up to 1.0400. The level, which had been support, now served as resistance.

Price then resumed its move down. We predicted the first trouble area would be 1.0300 and price went down to 1.0306. Pretty darn close! It has since moved back up, but it is still below the point at which you would have entered the trade. It’s not clear if the move down is over or if it is only taking a break. You might consider moving your stop loss to your opening price – 10 pips to ensure that this will be a profitable trade.