Today I decided to ride again with USD/CAD, because it is in a nice strong trend. First trade is a fail, but the second one a success.
Lets take a look at both trades separately.
When I monitor a currency pair I draw support and resistance areas on the fly. Most recent data is more important. Here we can see that price is reaching a area where it had some trouble before. So if it going to have trouble to break this support area again, we can enter a reversal trade. And this last candle is telling me that price is having trouble breaking through. We enter a trade as soon as this candle closes like this.
Unfortunately this trade didn’t work out. But it is totally normal. Can’t win every one. In fact with our strategy, we lose about half of the trades and still win big in terms of money. And that is what counts in my book.
As soon as we hit our stop loss with trade 1, there was a new setup.
You may have noticed, that I have moved the bottom S/R area a little lower. It is perfectly OK to correct and move S/R lines a little.
Like in trade 1, price is having trouble in the S/R area and we enter a reversal trade.
Happy scalping to everybody !