Dear Daily Price Action Setup Traders
First of all, Happy New Year and don’t allow anybody tell you what is possible and what not- you should be the ones making up your own destiny and reaching your goals. Don’t forget that we are in the field that rewards a very few people, but the ones that are most persistent get the best results in the end…
The ones from you that are already subscribers to my website have received the trading results from the last 14 positions and I must say that they are not amazing, but still the trading ideas that I have generated managed to return over 900 pips with just 35% winning ratio. The EUR/USD trade that I mentioned in the last newsletter believe should be closed. As you have already seen, I do not like to go with certain profit taking levels. I like to let a position run its way and as was the case with the last EUR/USD trading idea, if we followed a certain take profit methodology, we would have gotten out of a trade possible much earlier. The most important thing as you should have already heard from me a couple of times already (50 and counting) is to let winners run. You shouldn’t be scared to do that as long as the trade is not showing any reversal signs from a Daily Price Action Setup point of view. We have seen a big gap after the weekend and then a huge reversal…
Let’s review the EUR/USD Daily Price Action Setup. What I am seeing is not so much of a great long setup, but at least is a daily price action setup that makes me think that we can at least lock profits now. There is a strong bearish rejection around the 1.1850 level, which indicates that time has come for profit taking. As you know, I do not like going against the trend and every time there is a Daily Price Action Setup against the trend I warn you to be extra cautious. This is the case with today’s daily price action setup. This strong bearish rejection has finished off the session into a pin bar. It is a strong reversal signal, but as a whole I would be more careful trading a reversal in such a strong bearish environment. Anyways, depending on the intraday action tomorrow I might decide to enter into a small long trade for a smaller than usual profit.
Parameters for a long entry are as follows: entry around the level of 1.1930. A stop loss just under the nearest swing low- or at 1.1855. The first profit taking level is 1.2000 and then depending on price action 1.2100.