If you are LONG on this trade as well, this would be a good time to take some profits and prepare for a retrace. I have already BUT I am leaving some positions open in case it does break the TL and continue higher before retracing. Don't be greedy! If +550 pips is not enough for you, then you're being greedy.
Do I think this pair is still headed higher? Yes, of course I do. In fact, I think it still has some ways to go yet. But the market is the market and will do what it will. So pay yourself now and pocket some of that profit.
So now you see that prices have made a HH and reached the TL. This has now created divergence in the . Mind you that just because there is divergence is NOT a good reason to SELL! Divergence does NOT indicate that prices are about to reverse. It only indicates a POSSIBILITY that it will and does NOT tell you WHEN it will reverse. Prices can continue higher without regards to the divergence for a long time before reversing. This is why so many of you make mistakes as I see people posting here to take trades just because they see divergence! That is an amateur mistake!
Divergence in conjunction with other SOLID reasons is what you need to see before assuming high probability of anything happening. Even then, what you must do is watch the PA for signs and clues. At the moment, there isn't any immediate PA that indicates a turn. That is why although I have closed some of my positions and banked some profits, this is NOT a time to go and SELL!
You can get more of my insights, analysis, trades and trade updates as well as LIVE chats and discussions on this and many other forex pairs and in REAL-TIME on my website. Go here to subscribe: http://goo.gl/qRNGsF
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
If you like my posts and find them helpful, please take a second to hit that LIKE button and follow me so I can know my post was helpful to you. As always, any CONSTRUCTIVE comments are welcome whether AGREE or DISAGREE.
Website: http://www.efxselect.com to subscribe