The EUR and AUD set up very nicely during the UK session. This is turning into a great week for trading and as traders know, some weeks are much better than others. The USD continues to strengthen. We are intraday traders not macro economists…so we are happy to find trade setups that meet our criteria, require low risk entries and bank our profits each session. We trade what we see each session and wish “position traders” all the best. We look for signs of where the BIG institutional money is entering and exiting their positions each session.
With the reaction to the UK news behind us, we saw a short opportunity in both the EUR and AUD. The EUR trade was a 4:1 plus Reward to Risk ratio setup. Although it didn’t make it as far as our Targets 1 and 2 before the US Economic news releases, we are very happy with the trade. Our targets enable us to determine whether our Reward to Risk ratio minimum of 3:1 to our Target 2 is available, and once we enter a trade, we protect our profits and read price for signs that the market may be turning or continuing. If price is slowing down, showing signs of reversing or event risk is entering the market, we tighten our “take profit levels” or close the trade. Where price goes after that is inconsequential.
It has taken me years of trading experience to develop the methodology. I was taught by the best and the rest comes from experience.
So far, it’s been a great week.
Good luck with your trading!