Retracement trade in the EURGBP
You know… sometimes I believe that patience is the most important virtue when it comes to trading.
It’s very difficult to be patient though, its far easier said than done.
But sometimes its the only way to be in the market and really have the odds in your favor, like it happened to me with this EURGBP trade, let me walk you through it…
Here is the short term chart:
- The market was trading near a LT level (blue line), and as you already know, most of the times, when it trades near an important level the market tends to consolidate… So at this point I was waiting for the EURGBP to break either extreme of the range and then start looking for trade opportunities in the direction of the trade.
- This is the moment the market breaks through the bottom of the range, this is July 2nd. A lot of traders make the mistake of taking this as a breakout trade, I wouldn’t do that because around this level is where most false breakouts occur.
- Then the market retraced back to the ST resistance level, it was a shame I wasn’t around the computer at that time… But that’s how things are, you cant be monitoring your computer 24/7.
- Then, on july 10th, the market retraces back to the main ST resistance level and gives me exactly what I was looking for, a significant signal with downward pressure. Being patient paid off.
Here is the signal:
What do you think about my signal?
Would you take that?
Do you agree with me that patience plays a very important role in trading?
Share your thoughts