DislikedI was going to post a chart up but this is a great chart. That first high has right now caught price up. I was hoping to see a bit of a deeper retrace(with the divergence + round number) and right now am caught in drawdown. If you trade like James where you move stops, then your stops would be at b/e at that first high Josh has marked.
Best
MikeIgnored
This pair moved so hard in the first 15 minutes of the new day (6 PM close EST, 5 PM close CST). I missed this move. It then retraced back up towards the .6000 level (at about .5985). I then set a limit order to buy at .5965, thinking that if price did come back down that far, it should go to at least .5945, get my stop to B/E and let it ride.
It came down to about .5960 and then rocked back up, eventually taking me out.
Overall, with the big round number, the divergence, and the .618 fib level, I think it was a good trade. I would take it again. It never really moved enough to move your stop to B/E (10 pip break was around .5985, low of .5960, without spread is only 25 pips). I mean, I guess you could target only 20 pips or so on a daily bar, but then one loss will take out 10 or so wins. And there will be loses, even if you only target 20 pips.
I believe this was just a loss, or at least was for me with my agressive stop loss placement. Also, zooming out, we can see .6000 has been tested a few times. I believe I have read that a strong level will often hold for 3 or even 4 tests, but after that, a break is much more likely. The momentum might have been too much for a Pin bar to reverse at this point.
Oh well, there will be losses, on to the next.
Best of luck Mike.