The Euro trade I posted the other day did not go to where I expected. However, the beautiful thing about proper money management is making a profit on a trade that FAILS! Obviously, no software is 100% accurate, which is why Money Management is so important.
Here we are a couple of days later, and the Euro is still showing great signs of weakness. Looking at the 120 minute chart, we had a beautiful setup overnight. I'm sorry to say that I missed it this time, as I wasn't looking at the market early this morning, but I wanted to show the setup anyway. The ellipse came in nicely, telling us this is the right time and price to expect continuation to happen. We closed outside the RTC with a vengeance, and established a 2-to-1 Reward/Risk ratio. This trade has everything you could ask for, being a low risk, high reward, high probability trade setup.
The previous low is 1.3850. I would look to take some profits before that price level and get to break even on the stop. The MOB target is down at 1.3754. There are about 185 pips in total potential in this trade, with 86 pips in risk. We'll keep an eye on this one and see how it turns out.
nate
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