Hello Traders,
As promised (although a little late), I am posting a couple trades I took on the 22nd, which, although it seemed like a choppy day, offered some really good price action setups.
Here they are below, starting with Exhibit A:
This is the EURJPY was has been not as trend directional lately, but still offered some intraday price action trades, with this being one of them.
I was actually using a combination of methods, but you can see shortly after I entered, the market sold back down towards the prior SL (swing lows), where I took profit as there were signals it would stop there and form an intraday double bottom, which it did.
So with a 21 pip stop, I ended up with about 60 pips which is a 3:1 reward to risk play. As to why I took profit there after such a strong bear bar in my favor, my general motto is, ‘when the markets in a range, you have to trade it like a range’. Being that this was in an overall range, the bottom barrier was likely to hold. This plus other price action clues on a lower time frame were communicating reversal - hence the exit.
Exhibit B (EURUSD):
Notice how the entry on this one is where there was a corrective move followed by an impulsive leg down. The area where I entered had already shown sellers were emerging around 3320, and holding that area. This, plus a few other thing suggest a short for the range bottom, which the market never really went in the negative, and then after a final pin bar rejection, sold off impulsively towards the bottom.
Anyways, hopefully that gives you some idea how one can trade markets which appear to be choppy, but really are offering opportunities with low risk and solid reward.
Remember, in trading, try not to only play your AA and AK (suited) hands. Many times QQ, JJ or other hands/trades can be quite profitable over the long run, regardless of whether they win the fashion contest.
Kind Regards,
Chris Capre