FXfreak wrote:cfabian wrote:FXfreak wrote:short eu 35....
FXfreak, same here... you just saw the break of that area and placed your stop order there with no confirmation?
I mean, this trade was laser accurate, but shorting there was risky to me because at that moment there was a big momo bar to the long side, price retraced to the MZ of that candle and a continuation to the long side was suggested. However it stopped right at your entry and had a move of 50 pips.
what i was thinking:
- on the left side there is a supply-area
- we had 3 wicks on m5 already which showed me that a reversal was possible
- it is a sell zone based on TROs understanding
- although price could have gone higher there was no real risk that price would go for 100s of pips to the north
- IF price would have gone higher i was sure that in 99% the price would retrace back to my entry (what i would have used for an exit)
the take profit was more luck and looked better than it was
it is a classic sam seiden trade.
cfabian, if you go long there than you are a consistent loser per definition of sam seiden:
1. you take an entry but the trend started already
2. you are buying right into a supply-area
if you want to go long there you should have a perfect entry with a small sl of 1-3 pips.
oh man, i memorized sams teachings
Thanks for your explanation man.
Actually I wasn't considering going long there. If going long I would do so on your bottom line area. I was just considering high risk to short there when a big momo up had formed, AND price had already gone to zero out the zone of that momo, meaning that chances of continuing long were high (note not to enter long there, but price to break that zone).
I'm long EU@1.3911 by the way. Price rested in that support area, and momo up appeared on asia opening. Hope it builds a nice move upwards.