EUR/USD PAIR/January 21st,2013/GMT+2
From my anticipation as posted in the Forum last week, I was waiting for a strong move to the North, that is, Long trade. So I already know ahead of time what is very likely to happen, what to expect. So I simply wait for a certain price pattern to confirm it, then I pull the trigger!
That is exactly how I took the trade below. The long tail kissing the thick blue trend line (the 89 on the weekly) and moving away from it agrees with the rule which says that when price breaks above the 89 it tends to pull back to it and moves away in its previous direction. The long tail indicated a price rejection situation. Price has rejected that level, the 89sma and is warming up for an up move, then at the 1-HOUR time frame where I normally make my deal, I saw lots of tails, small tails saying the same thing. I was very careful with this trade because the move was as well against the 21ema of the 4-HOUR. The 4-HOUR 21ema is always a strong barrier for price, but I also know that the overall market weather has got enough strength or potential in the upside direction to blow or pierce through the 4-HOUR 21ema. So I balance my analysis with that and with a bold step of FAITH I took the deal!
Update: Wow! I lost money in this wonderful planned trade!
I was stopped out; my stop loss was hit and I missed the pips...the problem was not that I set a wrong stop loss but because of the rough weather, the weather was so grumpy. For a smooth weather, the stop loss is okay, and another reason is that, I don't sit down in front of my computer to watch my trade, it's like a waste of time for me unless I am doing some kind of back-testing on my chart to add a new idea to enhance my profitability in trading. If I were to be there life watching the market, I think I would have adjusted my stop loss to keep off from the noise of irregular price actions...
SEE MY OVERALL CHART BELOW FOR FURTHER DETAILS!
God Bless Phillip!