This is a follow up post on the EURUSD Bullish Break Out. Let’s take a look at what happened over the past few days since the lesson was first posted.
The first post can be found here:
EURUSD Bullish Breakout Part 2
A potential trend on the EURUSD was highlighted in the earlier post using the MACD and ADX indicators. While prices were under resistance levels, no one could tell for sure if the EURUSD would break above them, or meet selling pressure and fall lower.
As it was, the EURUSD moved above the resistance lines, hit the FE 100.0 price target, and is now bouncing between the FE 100.0 and the resistance now turned into support levels.
In cases like these, unless you are already in a trade on the EURUSD, an alternative option would be to go into the smaller time frames to search for potential trades setting up. However, with such a small range between the FE 100.0 and support levels you would have to be a very nimble trader to jump in and out.
So if you can’t find a decent trade setting up on the time frame that you want to trade, here’s where you exercise the virtue of patience. Look for another trade elsewhere that might be setting up, and let the EURUSD do its thing.
Staying out of a trade is also a position. 