I've been eyeballing 0.87600-0.88200 for a while. Why? Its a major resistance level from year 2013 and we're going strong towards it. Since its an important level it also acts as a magnet, and thats why I want in on the ride.
Sure, we could see a bigger retrace before we finally hit this level, but I dont want to risk missing it.
Why am I entering now? We see structure (see blue arrows) that clearly acted, and more importantly, HELD as support. The RSI was also heavily oversold to add to our case.
The "negative" side of being this close to this key level is that, for a trend following trader, we could see massive sell-offs and profit taking when we hit this level, which could stop out most traders following with a tight stop loss.
On the other hand, we could also go above and aim for the sky - perhaps the high of 2009, 0.98000?
I'm entering and will follow with stop loss after we hit target 1.
Sure, we could see a bigger retrace before we finally hit this level, but I dont want to risk missing it.
Why am I entering now? We see structure (see blue arrows) that clearly acted, and more importantly, HELD as support. The RSI was also heavily oversold to add to our case.
The "negative" side of being this close to this key level is that, for a trend following trader, we could see massive sell-offs and profit taking when we hit this level, which could stop out most traders following with a tight stop loss.
On the other hand, we could also go above and aim for the sky - perhaps the high of 2009, 0.98000?
I'm entering and will follow with stop loss after we hit target 1.
Trade closed: stop reached:
Stopped out on BoE rate decision news hitting the market. Will let it breathe for now. At least we're one step closer to the next winning trade!