Update on today’s EURUSD Long Trade set-up

If you were able to identify the EURUSD Long trade set-up and took the trade; that’s nice, because it happened quite fast.

The Hourly chart above shows the set-up I saw. Hope you can view the formation easily as it is very tiny and cluttered

Using the 5min chart above, I’ll like to give you an idea of how I manage my trades. Yours could be slightly or completely different; it doesn’t matter – as long as it suits your personality.

Based on my method, I placed my initial Stop Loss 2-pips below the most recent hourly swing low @ 1.4198 (please, where necessary, always factor in your broker’s spread)

I identified two potential reversal levels at:
fib 50% ret. @ 1.4237
fib 78.6% ret. @ 1.4215

I placed a Limit Order @ 1.4215 (I decided not to factor my broker’s spread, but I don’t always disregard it)

Pls note that I don’t really like using the 50% fib. ret. level as the reward/risk ratio is always close to 1:1; and I prefer 2:1 and above (or, at least, close to 2:1)

With 3 lots, I exited first lot when price moved favorably by same amount risked, which was 19pips @ the 1.4234 level (which I’ve highlighted using the blue dashed line). Then, I moved my Stop Loss to 2pips below the level where price initially reversed (hope you can see where my Stop Loss is currently). With that, my trade is already protected from loss (as in this case) or from maximum loss of 0.5% of my capital initially risked (as in other applicable cases)

At times, if the pips risked is close to 50pips or more, I take some profits before it gets to the amount of pips risked OR move my Stop Loss to break-even (honestly, this aspect is simply an area everybody has to handle in their own individual ways).

This is a bit lengthy, but I hope it helps.

For anyone that finds this method helpful, and didn’t know much about it, it might take some time to fully settle into it, but I believe it’ll worth the time invested. Personally, though I’ve learnt a lot about it, I’m still learning every day.

NOTE: Currently, as I’m about posting this, I’ve been stopped out; but I’m happy I managed the trade well enough to protect myself from loss (I’m not always that fortunate). And I always remind myself that there’s always another trade.