Trade of the Day

Below is a 4H chart for EURUSD.



Usually I wait for price to breakout of the ranges indicated by the green and red levels. In particular, for EURUSD I would wait for a break short through the red level. However, The innediate price action was bullish, and this was supported by divergence on the chart. So I decided to take the bounce from the support level and look for opportunities to go long. Short time frame tick charts gave me the chance for a pullback as shown below:



Entry worked perfectly at the 61.8% retracement level giving me an entry price of 1.3187 with a stop of 22 pips. I scaled-out at 1.3198 giving me a breakeven trade. However, price failed to make a new high. But what was forming was a breakout trade setup. Here it is on a 15 minute chart:



Since I was already at breakeven I was able to trade the breakout without increasing my overall risk exposure. The breakout was spectacular!