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12-01-2016 EUR/USD Scale Short in Consolidation

12/09/2016

Basically the same strategy as the prior trade.  Shorting on a minor fib retracement of prior H4 move short.  Shorting on H4 100 EMA.  Topping candle Price Action for entries on H1 chart

Chart 1: H4 shows fib retracement, EMA and entries short

009-12-01-16-h4-eurusd-short-at-levels-fib-ma-support-beautiful-trade

Chart 2: H1, three hourly entries on or about prior support / resistance.

Entry 1: on prior resistance and candle (non confirmed) pattern

Entry 2:Slight frontrun or the H4 ema and fib retracement (to make sure we entered short at close to desired level)

Entry 3: short on the EMA at desired entry level. Stop losses slightly above these areas for a reasonable short move.

010-12-01-16-h1-eurusd-short-at-levels-first-short-bad-tl-break-2nd-short-level-only-3rd-short-levels-and-pa-had-4th-short-above

Chart 3: M15 showing entries and m15 patterns – Entry 2 placed pre London session at top end of afternoon consolidation zone. Entry 3 entered as a order short in an attempt to catch the move short.

Entire trade closed out on take profit order placed at slight frontrun of .382 fib retracement of prior m15 swing move long.

011-12-01-16-m15-eurusd-tp-on-fib-318

Conclusion: Excellent trade and execution with proper position sizing, account and leverage management.  Good example of not needing to catch all of a move to have a good trade.  I could have closed out this trade on a lower fib retracement, but in consolidating markets, lower fibs are probably better buying opportunities than trade targets.

This is a good strategy in consolidating markets where there is minimal risk of strong moves one direction or the other. The trader should stay away from news and election announcements when positions are open – or adjust margin accordingly.

Chart 4 below shows H1 of the euro and this buying opportunity at the .5 and .618 fib retracements (did not enter those trades as was not in the office or watching price action)

012-12-01-16-h1-eurusd-tp-on-fib-318-and-potential-buy-on-ma

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