May 6th Breakout from European Low
EUR/USD
Point B price of 1.2654 was established at the end of the European session and was session low, which made it a clean opportunity.
It retraced to the 78.6% fib. Additionally, we have the Ichimoku cloud edge as resistance, was well as a previous S/R of 1.2736 (red horizontal line).
Entry = 1.2642
This was the second candle (18:10) after break candle closed on 5-min chart.
Stop-Loss
Check 1-min chart for pivot.
1.2671 + 4 pips = 1.2675 = 33 pip risk
That's the best we can do as the market was moving good.
Target Profit
FE 100 = 1.2595 + 4 pips = 1.2599 =+43 pip reward
Risk/Reward = 33/43
As most of you know by now, the stock market took a big dip around 18:40 GMT. The EUR/USD did hit the FE 161.8 exactly.
Don't chase the market when this happens as a big spike back can hurt you. It can drag your stop loss and you will still be responsible.
The fibs, when properly drawn, will provide an exactness to your trading.
Cheers
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