1/13/09 EURGBP Trade

• Tweet

• Tweet

There were quite a few surprise/sqeeze boxes to trade this week.

Long 1 (200) EURBGP @ 9098
Stop @ 8930 (-168)
Limit @ 0092 (+994)

Click above for larger image

Stopped out @ 8930 for -168 pips.  Looking at the chart, there are a couple things that stand out.

One is the second test of the support level after the breakout.  Is that a possible sign that the trade isn’t going to work when it has to test the first bounce? Possibly, I will have to look at previous trades to find out.

Second, there are two obvious dealing ranges after the breakout.  The first is a range that seems to be typical of a market that still needs to clear orders before it completely breaks out.  The second range, being lower than the first was a good indication that the trade wasn’t going to go my way and I should have exited.

There are times when it pays to be patient, but in this case I should have gotten out.  That would have saved me a few pips.  I had a feeling that this trade wasn’t working out but I couldn’t put my finger on why, now I know.

Lesson learned.

If you enjoyed this article, you might also like:

1. EURGBP Trade
2. 1/6/08 EURGBP Trade
3. 1/13/09 AUDCAD Trade