EUR offered up a nice setup overnight. I like to see a big move in the Asian session. We wait for the news to pass and vigilantly look for an entry.
The UK traders began their session by retracing the Asian session’s move lower. A wicky candle catches our attention as it creates a lower swing high. We wait for further confirmation and enter short. Our Reward to Risk meets our minimum of 3:1 to our Target 2. Price promptly moves in our favour as the session trend is underway. Price cuts through both yesterday’s low and the Asian session low without retesting either. As price moves closer to our Target 1 we continue to move over “take profit” down. Price briefly penetrates Target 1 which is an area where we lock in our pips to avoid giving them back on a reversal. We close the trade as price moves back above Target 1 – locking in a large portion of the trending move.
It’s always nice to start the trading week with a large move. Let’s see what the rest of the week brings us.
Good luck with your trading!