EUR/USD 1HR
EUR/USD 5M
The EUR/USD currencies had a sudden perfect setup this morning around 6AM. The first 1Hour chart shows the trend line breach and how the trade was progressing in profit at 8 AM. The second 5 minute chart shows the trade set up as the short trade began. The forex pair retraced above the trend line against the trend. This made for an easy short – a stop+tto setup – as it dropped back to and below the trend line. I entered short at the trend line and box break and set my profit at a lower resistance.
I could not monitor the trade. If I was able to watch the trade I would have moved my profit and loss stops as it progressed. With 2 shorts running my gain for this trade was 300 pips. It was possible to double this return if you monitored the trade and reset your stops.
What made this a great trading opportunity was that 1)the intitial spike was against the trend,
2) There was some boxing in of the currency pair as it peaked 3)I was able to set my tto entries below the market and to raise those entries higher and higer until the pair stopped moving up. 4) THEN I WAS IN POSITION FOR THE GOOD DROP.
If we are lucky we will have the opportunity to trade down off of a retracement to this trendline again. Are you having fun with this trade? Do you think you can make a living trading like this?
Wait for the good setups like this one. Sit on your hands the rest of the time and you can make a living trading currencies. See the trend, and stay with it until it reverses. End of Plan. K.I.S.
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