Education

EURAUD Break and Retest

By BE.FX

1 HOUR

4 HOUR

Ok so here we are, back at it. I posted this trade on my instagram stories earlier today( instagram.com/breakevenforextrader/)

I closed .08 of my position when price moved +20 pips in my direction. Stop moved to breakeven and trailing stop set at +20pips. .

Now that the numbers are out the way. Here’s why I entered:

First off I overnight yesterday I closed out a long position in eur/nzd for a positive gain. I think this gave me some confidence that eur pairs might be good for buys.

Next, I identified an area of consolidation on the 1hr chart. Now I had these drawn up pre New York, so you’ll see that price actually broke and closed below my 1hr breakout line (lower blue line) but I was asleep at this time. So I actually missed the trade, but there was a nice retest for a short. .

Fast forward a few hours. I’m at work and have a few moments to check the charts and I notice the price closed back in range and then above my upper breakout line. Nice. I guess this is what the people I follow call a fakeout. .

I hesitate to enter a bit just because my confidence is low at the moment but I do enter (a bit late though). .

And you can see how it is playing out. .

I’ve been thinking more about waiting for 4hr candle closes as confirmation first before entering trades. Even if my zone is drawn on the 1hr chart. Not sure if this is the right way to trade but will see how it goes. .

It does mean I have less chances to enter a trade but I think for where I’m at now that’s a good thing. .

Hope everyone having a great trading week

BE.FX

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