Yesterday I saw a pretty nice level in the last weeks’s eurusd fall and decided to bet a few pips on it. Here is what I setup yesterday and what I saw just 5 minutes ago (here in Bulgaria it is 9 in the morning). Indicators - 14 EMA, I just like to see it on the 30 minutes timeframe chart, gives me some comfort if price is only one side to it. Risk is 14 pips (with the spread), reward is 90 pips (profit line is not exactly at the level, if it comes down enough profit taking should be at 1.3105 or 1.3090). This will change for sure - just moved the stop one level down (not exactly a level, set it up to zero profit/loss), profit taking also could change because these night leves may get dangerous.
Why this level? Of course there is a Fibbonacci cluster at that level, but that is not that important. It is a really strong level, it is valuable, it could be deceiving for many, many traders that the pair is goin up. Main trend is visible on the daily chart, it just started the wave at the last days of February. I think that is the reason sharks could place their orders at that level. And if we are swimming with sharks we’d better catch for one and ride it, the other way is get eaten…
OK, gotta meet my girl after a while, so I should leave Forex alone, took profits a little conservative - 1.3105. It is one more level down - 1.3090, it could be reached after 2 minutes, or after two hours, just don’t have the time to watch and don’t wanna risk 30 pips stop loss for 15 pips profits if I leave it by itself. There are more and more levels down - but may be not today, that 1.3090 should be really tough support.
Case closed: plan was 14 pips risking, 90 pips targets; real thing - 14 pips risked, 1 pip drawdown, 83 pips profits (including 2 pips spread). This was first trade of my long Millionaire’s Forex career 