Looking to continue last weeks trade. EURUSD Sell trade set up.
Took my profits Friday (see orange/yellow short sale on chart) because I rarely keep trades open over the weekend. I would have kept the trade going but because of limited trading time, i closed the trade early.
Now I am looking for the right opportunity to get back in.
1D Chart Below - Downside movement looks to just be picking up momentum.
4H Chart Below - Not oversold.
My trade plan:
Primary Plan: Ideally I'm looking for a retracement at least to 1.1237. Retracing to ~ 1.1277 would be even better. A retracement would make the risk/reward much more favorable. With this scenario I would have the confidence of placing the trade and letting everything play out with minimum management. Let the chips fall where they may.
Possible Secondary Plan: As I wait for the set up above or if the set up above does not occur, I can make some more aggressive (risky) trades and enter a trade before a retracement and hope to ride the momentum before retracing. This would require actively managing the trade, tight moving SLs (to lock in gains) and I would use a shorter time frame (e.g. 15M chart). Once there is growing evidence of a retracement, take profits and wait for a better longer term short entry.
The problem with the "secondary plan" is it takes a lot of energy and most of the times I end up breaking even or only making a few bucks. The good thing about it is it gives me something to do while I wait for the ideal set up.
Patience is almost always rewarded and always wins in the long run.
FYI - I'm currently in on the "Secondary Plan". Sell@1.1176 w/ current SL=1.1186
Now I am looking for the right opportunity to get back in.
1D Chart Below - Downside movement looks to just be picking up momentum.
4H Chart Below - Not oversold.
My trade plan:
Primary Plan: Ideally I'm looking for a retracement at least to 1.1237. Retracing to ~ 1.1277 would be even better. A retracement would make the risk/reward much more favorable. With this scenario I would have the confidence of placing the trade and letting everything play out with minimum management. Let the chips fall where they may.
Possible Secondary Plan: As I wait for the set up above or if the set up above does not occur, I can make some more aggressive (risky) trades and enter a trade before a retracement and hope to ride the momentum before retracing. This would require actively managing the trade, tight moving SLs (to lock in gains) and I would use a shorter time frame (e.g. 15M chart). Once there is growing evidence of a retracement, take profits and wait for a better longer term short entry.
The problem with the "secondary plan" is it takes a lot of energy and most of the times I end up breaking even or only making a few bucks. The good thing about it is it gives me something to do while I wait for the ideal set up.
Patience is almost always rewarded and always wins in the long run.
FYI - I'm currently in on the "Secondary Plan". Sell@1.1176 w/ current SL=1.1186
Taking a wait and see approach before opening up any additional "secondary plan" trades.