A rather tight trailing stop should be maintained.

Bearish trend Bullish trend On the example charts you can see the December 14, 2009, signals generated both for the bearish EUR/AUD and for the bullish AUD/CHF charts. As you see, the signal line for stochastic oscillator is the actual stochastic, not its MA. The exponential moving averages should form an almost perfect trend for the more accurate signals. In the Short position example both positions would hit a rather optimistic take-profit. In the Long position example the second trade would end with almost no loss if a tight trailing stop was used.
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