EURUSD [Daily, Long] False Break/Failure Test
Updated
Market has been in a range from the 1.163 level to 1.207 level. Price action towards support at 1.163 is clean. Price took out the previous candle structure low on 7 Nov 2017. There was strong price rejection following this. Sellers who short the break of the support are now trapped, many would sell off their position when price goes to breakeven, fuelling the buying pressure.
Entry: Market order of 1.16373
Stop: I placed a more aggressive stop loss just a few wicks below the candle structure, referenced on the 4hr timeframe as that is where my trade would be invalidated. Also to trade with a larger position to fulfil a 1:2 risk reward ratio.
TP: 1.19 as I foresee price rejection at this region due to resistance.
Entry: Market order of 1.16373
Stop: I placed a more aggressive stop loss just a few wicks below the candle structure, referenced on the 4hr timeframe as that is where my trade would be invalidated. Also to trade with a larger position to fulfil a 1:2 risk reward ratio.
TP: 1.19 as I foresee price rejection at this region due to resistance.
Trade closed manually
Price rejection on 31 May 18 4hr candle. Exited manually with 0.25R profit
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