EURUSD: SImple Lesson On Price Action Analysis
After the recent disappointing loss on a highly anticipated short trade on this pair, I am now re-analyzing this pair from scratch to see what I missed and to see what could happen now.
But while I am doing that, I just want to throw this out there for those that are mystified as what to do next on this pair. There's really no mystery....WAIT! You need to see more price action before you can tell with more confidence what to do. Don't feel like you NEED to be in a trade or you'll miss something! This is a very amateurish mistake.
Anyway, here's what I need to see before I do anything LONG OR SHORT. This is examples of the kind of price action I want to see. If LONG, then I need to see a much clearer move up and away from the freshly broken structure and then a move back down to retest it and if the structure holds, then I would look for a BUY.
IF for a SHORT, then I would need to see prices break below the structure AND break the lower TL of the trading channel it is in and THEN see it retest the structure from the bottom and if that structure holds, then I would look for a sell.
This is pure PA in action. It is the most reliable indicator BUT it takes a lot of patience to execute. And yes, it might not happen this way and yes, you could miss trades waiting on it, But having PA on your side is WAY better than not having it on your side!
Good luck!
But while I am doing that, I just want to throw this out there for those that are mystified as what to do next on this pair. There's really no mystery....WAIT! You need to see more price action before you can tell with more confidence what to do. Don't feel like you NEED to be in a trade or you'll miss something! This is a very amateurish mistake.
Anyway, here's what I need to see before I do anything LONG OR SHORT. This is examples of the kind of price action I want to see. If LONG, then I need to see a much clearer move up and away from the freshly broken structure and then a move back down to retest it and if the structure holds, then I would look for a BUY.
IF for a SHORT, then I would need to see prices break below the structure AND break the lower TL of the trading channel it is in and THEN see it retest the structure from the bottom and if that structure holds, then I would look for a sell.
This is pure PA in action. It is the most reliable indicator BUT it takes a lot of patience to execute. And yes, it might not happen this way and yes, you could miss trades waiting on it, But having PA on your side is WAY better than not having it on your side!
Good luck!
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Twitter: @andrewefxselect
Website: efxselect.com
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