DislikedEURSEK - Daily. Starting to box up, already clear S & R halfway through the box, strong MACD divergence, I know people who will trade this just on the divergence alone and people who teach it this way, it really should just be added confluence, price action needs to come first. Worth keeping an eye on though imo. {image}Ignored
1) I dont trade exotic crosses. They are not that reliable in my opinion (i.e. you see a giant A+ pinbar but on the next day it fails) - It doesnt mean you can't trade them. But you better concentrate on the major crosses. (or cfds whatever.)
2) They have a HUGE spread.
Anyway about the setup. This setup would look A+ to me, if it didn't get near to the swing high.
What I observed over time:
These breakout and retest setups are the best, when you still have the long term bias in your hand. (I.e.: I want to go long when I expect this to go further due to the daily bias. (Pinbar, BEOB, Trend whatever))
However If price makes a full swing (like in this case) - it changes the direction of the bias. So in this case you are not "trading with the trend" but against it.
For illustration:
GBPJPY made this AMAZING clean S/R. We also had a clean, fast break. (1H) Textbook example.
But as you can see on the daily we already reached the bottom (swing low) - price formed a pinbar and now the trend is changing. I definitely dont like to trade against the daily bias. And in this case it wasn't wise either.
But i strongly recommend to demo trade everything you see, keep a track record, cause that's the only way you are gonna learn
Cheers,
Stephen
It's all psychology...