This pair started by giving us a head fake, then turning around and moving in our direction. This is actually two trades, the first a loss of -62 pips and the second a gain of +30 pips for a net of -32 pips. The first trade opened at the end of the 0700 EDT bar yesterday (May 27). I was short the pair at 0.7825. The pair reversed immediately and took us out at the stop loss at the top of the channel for a -62 pip loss. The odd thing about this reversal was that it was with mostly red (or down bars), which I find to be a bearish signal. Even after being stopped out, I thought this pair wanted to fall. We were short the pair again at the close of the 1400 EDT bar, and again (coincidentally) at 0.7825. The pair fell pretty steadily this time reaching a low of 0.7742 before reversing. We moved our stop to break even at +50 pips and I put a 10 pip trailing stop on the trade. We got stopped out just after 2015 EDT at 0.7795 for a gain on the second trade of 30 pips. Total for the trade -32 pips. While this trade did not work out like we'd hoped, the set up was sound and trades like this will win more than they lose. As one of my Alaska friends likes to say "Sometimes you get the bear, sometimes the bear gets you."Happy Trading!
