Last updated on November 30th, 2013 at 11:46 pm
+5 pips GBPUSD
Saw 2 higher lows formed at 20 EMA
However, took profits at mid pivot line because daily R1 was 50 pips away.
My risk was only 10pips. Market isn’t going to give you a 5:1 RR for a short 2 to 6 bar trade. Furthermore, since EURUSD and GBPUSD are correlated, I was seeing that the EURUSD needed one more higher low in order to breakout to 1.35117. Hence, I inferred GBPUSD wasn’t going to get very far higher either.
Anyway, watch the london open in 3 hours. EURUSD should break out higher to 1.35117
TP hit +36pips. Taking this EURUSD trade for example, a 2 leg pull back within each leg of a 2 leg pull back is fine (see al brooks books). Most importantly is to stick to the trading hours of 2.30pm to 9.30pm GMT+8. If it is too late in the day, even the best setup may not work because price is less likely to move. The setup must also be convincing.