This is a better planned redemption trade second entry to the EURUSD short trade yesterday that closed out after hitting my SL and promptly reversing and record speed. I have a unique talent for placing my stops right at the reversal points – if only it were a talent I could get paid for! After getting taken out on the original entry and waking up nauseous after seeing the takeout happened 1 bar before the break and broke hard.
After I recovered, had some nice expresso and decided to go on with trading in spite of this setback, I waited to see if the pair would break the short term TL on the 60M. I entered after the break and over 2 days followed the pair, leveraging new positions once profitable. Took some off at key danger points, and reentered the trade after confirmation after the momentum continued. This was my best trade both in PIPS and profitability in several months. Well over 125 pips in range. I am still in this trade with one final position to see if we get a continuation break down from the 60M 800. As I write this, the Asian session is just ranging tightly. I expect the Eurpean session will break hard in reaction to the 2 day downward trend but being a mere mortal can not predict the direction. There is fundamental data that also weighed in on my thoughts of this trade. On a purely technical basis, I would normally have closed this final position and waited for a new confirming break.
UPDATE 24July08 – The initial trade setup is now profitably closed. I am watching to see if a continuation trade setup will occur and will take a better look at the overall longer term trends.
See the trade setup below – now ranging oversold around the 800 on the 60M