Welcome to another entry into my trading blog & journal. Today, I’m talking through the Forex trade I made in the pair EUR/USD. Price might’ve been a bit extended/oversold, but “the trend is your friend”, so I took a shot. Read on to see how this trade played out.
I’m doing this analysis on October 19th, the trade occurred on October 3rd.
Entry – 1.04479
EUR/USD had been incredibly weak over the last several weeks, and I assumed that weakness would continue. A bear-rally had formed, and price just came out of oversold levels, so I thought it was ready to make another push down.
Exit – 1.04721
Price pushed down just enough to trigger my entry into the trade, then it pretty quickly pushed back up and stopped me out.
The funny(?) thing is, looking today, my entry was the literal bottom. Price hadn’t been that low since December of ’22, and has been pushing up since then. I mean, it wasn’t extended, per se. It was a long run down, but that doesn’t mean it couldn’t continue. Hell, it still could continue.
But price was at (nearly) yearly lows, so maybe that should’ve been a sign to stay away. Hopefully this is just a last remnant of my prior trading style, and with my new one, I won’t fall in to this trap.
Thanks for reading! Did you call this bottom? Let me know in the comments. Or, let me know what other trades you got in to and how they played out. And as always, stay tuned for more trades and analysis.