This is how I traded the EURUSD and got 140+ pips (complete strategy)

It all comes to the reasons why to take your trades…

It needs to be a sound reason, you need to have a methodology so you can determine what risks to take and which ones to avoid…

You cant take a trade because:

  • You simply thought the market was going up
  • You followed some one else’s advice
  • You got influenced by a market analyst
  • You saw the oil price moving up, etc

The idea is to get in a trade when the odds are on your favor, when the likelihood of the market of moving in one direction over the other is greater, when you’ve got a either, a very good profit potential or a good accuracy factor…

You see what I’m getting at?

So here is the reason why I decided to trade the EURUSD…

EURUSD Analysis

Have a look at this chart:

Once the market broke through the previous high (orange arrow), I knew that it was likely to continue its way up until it reaches the next LT level which is at 1.1278.

That breakout activated its bullish condition, which means that only long opportunities were in play. And that’s what we started to look for since last week…

Once the market is in a very clear bullish condition, you just need to find an excuse to take trades in the direction of the market condition…

You might use different strategies, but I prefer to take my trades based on price action… in this case I decided to take my trade based on the breakout of a short term range…

Here is the range that I decided to trade:

See that little range (blue arrow), that was my excuse…

And yes, sometimes its difficult to hold your trades for that long, but again, sometimes its really worth it.

When the market conditions are clear, I always try to hold my trades as long as possible, specially if the market keeps moving on my favor.

Its easier said than done… because human nature wants you to take this pips fast and cash in…

But I guess that’s a constant struggle that will be there for ever, you just need to get used to it…

Why I decided to take profits?

You need to be aware that long term support and resistance levels are more like “zones” instead of plain levels… so its always a good idea to set your TP from 30 to 50 pips below/above the next LT level…

Your Turn

What do you think about the EURUSD right now? Did you trade this swing?
What other currencies are you focusing on right now?
Will you be holding your trades during tomorrow’s fundamental releases?

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .