Currently sitting nicely in this trade at +150 pips and there were a few elements enticing me into taking this trade. Firstly, after the freefall drop in the pair over recent weeks, we saw 3 consecutive daily candles line up with not much movement, their long wicks to the downside indicated reticence to drop lower and perhaps a change in sentiment and a retracement up. These indecisive candles had lots of price action data contained in them and their wicks told me where to put my stop loss.
I then measured the phases of the market, the phase one drop down in its first recovery dropped around 850-1000 pips in 10 or so trading days, we then saw a 400-550 pip recover over 2-3 days, then we dropped significantly again by 800-950 pips over 10 or so days and hence why I am expecting a 300+ pip retracement back up, half of which has already been achieved in one day! So evidently one element of this trade was simply reading price action, and the other simply involved pattern repeatability whereby I was expecting the measurements and durations to be honoured by the market.
My stops have been moved to b/e and I have closed out my first position for +150 pips, leaving my second position to hopefully go and hit my target over the coming day(s).
I then measured the phases of the market, the phase one drop down in its first recovery dropped around 850-1000 pips in 10 or so trading days, we then saw a 400-550 pip recover over 2-3 days, then we dropped significantly again by 800-950 pips over 10 or so days and hence why I am expecting a 300+ pip retracement back up, half of which has already been achieved in one day! So evidently one element of this trade was simply reading price action, and the other simply involved pattern repeatability whereby I was expecting the measurements and durations to be honoured by the market.
My stops have been moved to b/e and I have closed out my first position for +150 pips, leaving my second position to hopefully go and hit my target over the coming day(s).