Hi, I'm Chris Capre, founder of 2ndSkiesForex. I'm a verified profitable trader and trading mentor. As a professional trader, I specialize in trading Price Action and the Ichimoku cloud. As a trading mentor, I have one goal: to change the way you think, trade and perform using 18 years of trading experience and cutting edge neuroscience to wire your brain for successful trading. Want to improve your trading edge and mindset? Check out my trading courses here.
Live Price Action Trade Setup EURUSD | Feb 28th
To end the month off, I wanted to share a trade I did today on the EURUSD. This was a simple breakout trade that collected a 3:1 reward to risk trade in less than an hour. I’m going to briefly describe the mechanics of what I was reading in the price action, what key levels I was paying attention to, why I took the trade and exited where I did.
Looking at the chart below, starting at the top left from A to B, we can see an impulsive price action move controlled by the bears. This is followed up by the typical corrective price action from B to C, which then results in continued impulsive selling from C to D as to be expected. D to E is corrective, so I’m expecting the sellers to reject any pullbacks, which they do at E and F with the latter being a pin bar at the dynamic resistance and 20ema.
This makes a nominal new low at G, which forms a pin bar a the low of the day (to be noted for later). The buying that follows is mostly corrective, forming a double top at H & I at the lows B around 1.3133.
Now, one has to ask, if the buyers at G were really in control, would the large bear bar at I form which took out in 5 mins of selling the last hour of buying?
This should tell you who’s in control, so an attack on G should be next and a likely break below.
This happens about an hour later, and after a two pip break, I take a short at pt 1. This is based on the assumption that;
a) the overall selling pressure on the day will continue
b) stops will likely be tripped on this break below the daily low as the buyers from G are now getting stopped out
After a brief rejection, the market submerges below the lows at G, and forms a textbook breakout pullback setup at J. Conservative traders not wanting to take the actual breakout, could have waited here and had almost half an hour at this level to take a short with several pieces of price action context in place.
Typically, if I’m not already short at this point, when I see this kind of breakout pullback setup, I’m going to sell that. This is classic with trend trading.
At J, we can see with the large bear bar, that 5 mins of selling erases 25 mins of buying – communicating the sellers are still in control by sending the price lower.
I exited at pt 2, as this was a strong support level from the day before which one can see on the 4hr charts.
Total result is a 3:1 reward to risk play in less than an hour. Keep in mind a trader making 300 pips on 100 pips of risk made the exact same profit as I did. Food for thought, but I hope you enjoyed this lesson on just one of the methods I trade and teach in my price action course.
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