Got faked out by the EUR this AM as I put on a short at 10:50, believing that 1.2875 was going to provide short term resistance. Actually, the entry I was looking for was 1.2890, the high from a few days ago, but the market was fading so I stuck my neck out.
Of course, the EUR just traded higher . . right up to my original 1.2890 short target at 11:00. Now, if you’ve been following my EUR series you know that I use a 15 pip trailing and stop loss, so from my original entry I was now at my 15 pip stop. And, just I was about to close the trade, the EUR faded a bit and I decided (joys of being a discretionary trader) to simply add another short position . . which (luckily) turned out to be the right choice.
The EUR then proceeded to slide down the 8/8 hi/lo channel, confirmed by the parabolics until 11:30 when a squat bar started to form and the parabolics fired a BUY. I was frankly frustrated with the trade and now ahead a net 11 pips decided to cover my short lots and wait for the next setup.
Lesson learned: patience, patience. If you’ve identified a technical target stick to it unless there’s overwhelming evidence that target is no longer valid. In this case my first assumption was correct and gred got the better part of my judgment. Trade signals also posted in the Chat room.
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