ForexSpirit

The euro was under pressure again this morning with another straight slide since the London open. I decided to have a bit more conviction in trading some counter trend longs as compared to last Friday.

Bias: long
Conviction: medium

The first long was based on a false breakout below both the minor support level at 1.4120 and the low of the morning at 1.4117. I exited as soon as a new low was made.

My second trade was a short as price was back up testing the minor S/R level at 1.4120 as well as testing the downward trendline for all of the morning’s move. I exited this trade when price failed to make a successful push below the double bottom at 1.4112.

I was almost immediately long as the failure to stay below 1.4112 was both a false breakout and a triple bottom. I should have probably stuck with a 10:1 gearing for this trade since it was a false breakout, but I saw the triple bottom first and had my lot size set appropriately when I took the plunge.

I got out as price looked to be pushing below 1.4120 again. It was a weak exit. Instead price was actually bouncing back UP from 1.4120 and I missed out on the 10 pip move up the followed.

That was the big long move I was looking for as part of my counter trend bias. I saw it as the great missed opportunity of the morning and didn’t have the heart to really look for more trades, especially after price entered a consolidation zone for 20 minutes. That meant I was not really looking to trade as price broke out of the range and streaked south.