EUR/USD trade Closed
I was planning to hold this position and ride it all the way down to 1.24 level but because of a very specific market behavior, i decided to bail out of my position and sit on the side lines for another opportunity. it is all about preserving your money after all : ) .
There are times that market operate solely based on panic or mania and that is when we have to avoid new trades or move stops to avoid huge losses. what happened today was a Sell panic an that is quite obvious from the charts. take a look at the screen shot, pay attention to the current candle body and compare that to other candles around it. do you see any difference?
It is almost twice as long as the other candles and this for me triggers an alert that something is not right in the market and that it is time to bail or move your stop very close to price action to avoid huge losses. in my case price just broke the daily S3 pivot level and that normally means Panic.this behavior is sometimes called “Capitulation“
i decided to move my stop to 1.2553 and it did not take long before my stop was hit.
total gain for this trade was 231 Pips.
EURUSD 1HR
