Zooming in to the 4 hour, we can see that the price pushed higher. A Take Profit Limit Order had been entered and was filled.
A Fibonacci Retracement was drawn with price then selling off into the 23.6 level.
The position size is relatively small, and the premise for the trade isn’t too scientific.
As a reminder, 2 separate lots were entered in order to have the flexibility of closing one of them manually and leave the other one for a potentially larger number of PIPS profit (This is relevant for U.S.A. based accounts – FIFO rule ).
It’s anecdotal and not a strategy – however over time I’ve noticed a nice – even if temporary – bounce from that area.
Earlier on the Weekly Chart there were 9 consecutive green candles and when a bear candle came up it was quickly bought.
The larger target would be the prior highs around 160 PIPS higher. Another option is the high of the prior candle around 50 PIPS higher.
There is also a trendline that can be used to draw a channel
This pair is currently up about 300 pips from entry.
It was an idea from a friend in my Trading Network. I hadn’t been checking on this chart.
So far there is a stop at breakeven. Will monitor.