We mentioned that price had setup for a pullback entry given that we had seen a number of indecision candles at this . This did indeed hold strong and we saw a strong move to the downside on Thursday and Friday of last week.
This is still very much early days for this currency. As trend traders, we do not set take profit levels but, instead, look to let our winning trades run and follow price action with a well-placed trailing stop-loss so as not to get spiked out prematurely from pullbacks in the trend.
There are two key support levels ahead that we want to see price clear. The first is the drawn-in support low of March and the second is the round number 80 150 pips further below.
Once these support levels are cleared, we will then look to add further positions and accelerate the profit phase.
Most traders will be looking to take long positions at these levels of support. This can work but is a difficult and inconsistent way of trading. The simpler and smarter approach is to always go in the direction of the trend. What this requires is patience and to give price the space to move and dictate a break through of these support levels.
Traders often forget or fail to appreciate that levels get broken when price is in a trend.
Patience is an essential skill to master else you will always be chasing the money. Instead, understand how to establish high-probability environments and trend structure and let the money come to you.