My Mistake in Closing EURUSD

So today I closed my EURUSD long trade which I got in a couple of days ago at 13225. You can see that from the chart where the price is at now.. 13278.

25th July 2013 EURUSD

From the Daily chart, you would wonder even why I closed this trade and from the Daily chart it’s not clear. However, earlier today, the big green candlestick did not look like this.. the EURUSD market had dropped heavily and looked like it was about to go lower. The blue resistance line which allowed me to go long the first time which was now support had breached to the downside.

You can see it in the Daily chart but this is what the price action looked like for today in the 1 hour timeframe

25th July 2013 EURUSD hourly

The huge selling below the S/R line spooked me and I sold.. shortly after you can see that the price recovered strongly and is where it is now.

That’s the thing with the markets, they can do anything and I made the mistake of judging the price before the days action was finished.

This ended up in a 40 pip loss.


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Category: Forex trader, Forex trading, Trading