A familiar pattern set up for the EUR in another light economic news session. The UK traders began their session by quickly pushing price below the Asian session low, inducing breakout shorts, then pushed the market higher to run stops. They then completed the “wash and rinse”… doing it a second time. A very wicky candle at the Asian session high was created as sellers entered pushing price back down. With enough orders accumulated, the trending move down for the session was underway.
We enter short above the Asian session low anticipating this area to be tested and retested. Seldom do we move right through it without a retest, but it’s wonderful when it happens. Price moves down, but unfortunately does not make it to our targets before the UK session ends. This was a nice trade setup with a greater than 4:1 Reward to Risk to our Target 2. We thought price would make it down to yesterday’s low before the session ended… but it wasn’t to be. We did have a nice 3 Drives patterns before our exit.
Another good week of summer trading done. Ranges have tightened up the past couple of weeks, so we are happy when we can find a high probability trade set up meeting our R:R criterion.
Enjoy your weekend!
Back Tuesday if we can find a trade.
If you are having problems finding your edge or with trading confidence, don’t hesitate to contact me regarding my course.