Today I manage to profit 48 pips on the EURUSD after a very good economic numbers from the US. But initially I am taking a lossing trade on the same trading setup. And here is why I make the first loss and finally make the profitable trade.I first identify the trade on my 30-min chart (the top chart) when the price break the blue dotted horizontal line. Once this happen I immediately go to my 5-min chart for trade entry, stop loss and exit setup.
As you can see on my 5-min chart, I draw a fibonacci line and then make my entry on the 38.2% level wtih stop loss placed immediately on the 61.8% level. Unfortunately the market accelerate on the long side rather on the short side and in just a few minutes after my entry, I am being stopped out.
Realising the market pulls back to the short side, just after my stop loss was hit, I immediately placed a sell stop order back on the original 38.2% level (1.4717). Thank Godness, the market make a strong short movement all the way to my target of 48 pips from my entry or more than twice my risk exposure.
In all, it's a profitable trading setup for this week at last. I will be looking for next trade on Tuesday and call for the week to enjoy my weekend.
Happy trading and enjoy the coming weekend ;)
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