As the holiday period started to set in I decided to trade the EUR/USD for the simple reason that most markets would be flat or quiet and being in Australia the US session was still to happen before Xmas. As you can see in the 5 minute chart above, the price action was very choppy and sideways. Bias was to the upside with the pull back to the 200MA (green) providing a bounce to the upside. Traders love to buy on a bounce of a major moving average line (MA). The question is will this bounce become a trend up or just a blip before moving down.
I decided go short at 1.30753 (indicated by red arrow). The reason was the long tails on the top three bars that are circled that show rejection. Also the 50ma (black) seemed to have a downward pull on the price action. I set my stop above the previous highs and my price target down at previous lows support levels.
Once set the trade up, I turned my computer off and went to enjoy my weekend. The trade was a set and forget , either take a loss or take a win. In this case the trade went to plan :>.
If I had stayed and watched the trade I may have gotten cold feet and exited the trade as the last inside high was tested again. After that test called a Retest Fail the price action went south hard and fast.
Happy Holidays to everyone and Happy New Year.
I will be blogging much more with lots of trades to learn from.....until then.
