Monday, December 8, 2014

8 Dec 2014: EURUSD daytrade

This was a loser.

I went short going into support during the start of the Euro / US overlap. The downward momentum looked pretty strong and was in line with the H1 and H4 charts. 

Support held very well, though. As you can see, price just bounced back quickly. 

I got out at -0.9R. I knew my stop loss was very likely going to get hit, so I decided to eat the loss at -0.9R instead of -1R. 

Was there anything wrong with my trade? I was depending on the Euro / US session open to break support quickly, and was prepared to move my stop loss to breakeven once price moved 1R in my favour (my target was around 2R).

If I'm going to trade the break of an S/R level, it'd seem better if I enter much earlier. That way I can move my stop loss to breakeven earlier, and there'd be less likelihood of being stopped out by 'noise' as the bulls and bears battle it out along the S/R level. There'd also be the chance to take profit if I was inclined. 

Either that, or I can wait for S/R to break and enter on the retracement.

Overall, this wasn't the best trade. I didn't give the market a chance to show how strong the bulls were at support, and entered blindly. 

(click to enlarge)

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