Forex Exchange Blog

There was a quick little 70 pip jaunt to 1.30 on the EUR/USD in pre-London today which went very nice. However, this then set us up with a Double Top at 1.30, weekly R2 reversal Pivot Point, major psychological level just as the London market is opening. So a whole bunch of money is entering the market as we are at major resistance, recipe for short plan indeed any time that happens, at least on the near term. If we manage however to break 1.30 it looks like a good rally could ensue. It’s very rare that we attempt to build trade plan’s on a ‘counter-trend’ type scenario, but this setup was just too good to ignore. In this video I show how we were able to enter into this short in a couple places, while at the same time keeping the risk, and risk vs. reward in line. In any counter trend situation you typically will have a rougher ride down, as literally every line of support will be respected. To remove this stress you need to have a very solid trade plan, and control your risk so that the fluctuations will not ‘emotionally’ shake you out of the market. By doing this you remove the possibility of getting in your own way and cutting the trade short etc. Once you have moved 15-20 pips in profit and can lock in break even, just relax and give the trade room to play out. This trade was essentially a Fibonacci festival as you will see, which ultimately led to 80-90 overall pips at it’s best point for an initial 22 pip risk. It did however, take all night to reach it’s destination.

FXBootcamp London Currency Coach-
Christian Stephens

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