Charts - Wednesday 4th February

by Liam 23:34 0 comments EURUSD

Took one trade today, a short on EU that I closed out early before a full stop. Got in a bit early, before it did decided to move down in the afternoon. There was a better short entry for the afternoon move but I was out of the house so unfortunately wasn't around to take it.

On to the trade that I did take.

EURUSD 15min / 3min P&F

1. Yesterday's highest volume zone.

2. A another zone at the high of yesterday which bounced off the low of a previous zone from the 22nd January.

Price was hovering between these two zones when I got up this morning. I told myself that I didn't want to short into volume zone 1, this was the highest volume zone from yesterday and had the potential to hold up the price, which it in fact did, for a while. Price came back into the zone and I thought we'd cleared the high and were now heading down so I took a short signal that formed. I thought that all the criteria were met to take the trade but I shouldn't have been shorting in that area. I need to wait for it to break the 50% or low (0%) of a zone before looking to short. This leads me to I mentioned at the start of this post. There was a much nicer entry that came along in the afternoon/evening.

EURUSD 15min / 3min P&F

You'll notice a new fib zone on the chart. The black zone drawn on the ADP NFP bar. Price broke out of this zone, revisited the low and then broke the 50% of the previous day's zone. The green circled entry on the P&F chart was nice for a 15-20 pip trade now that price was clear of the 50% zone. This would've been an ideal entry to take.

I'll just have to add it to the "trades that fit my strategy" pile.

That's all for now,

Cheers,

Liam