As I was already beginning to think of the exciting weekend ahead of me, I figured I’d take a look at the charts to see if I could get a trade in before I started my usual day of projects, phone calls, and the like.
It was around the NY open when I saw this type of market structure.
*** EURUSD Market Structure ***
EURUSD MARKET STRUCTURE
It was clear that the market was at a decision point. Notice how it is in the vicinity of that bright Logical Forex Magnet Line towards the right of the image?
This caused me to zoom in and take a closer look.
*** EURUSD SCALP ENTER ***
EURUSD SCALP ENTER
Let’s look at the Indicators:
- Logical Forex Activity Lines – Good. Plus, it is right near the NY open. There should be good liquidity, should I choose to trade.
- Logical Forex News Alert – None showing.
- Logical Forex Flow Lines – Price had a huge run down. Now, it consolidated a bit and is in the process of deciding which way it will go next. The Spine wasn’t fully revealed, but the proper fanning out of the Flow Lines was enough for me.
- Logical Forex Phase – Tracking along very nicely with price.
- Logical Forex Bias – Definitely pointing upwards.
- Logical Forex Magnet Lines – If you have been reading my prior posts, you will notice that I typically like a very tight dance of price directly to the Magnet Line. There was none of that just prior to my trade. So, what to do? Trade – or pass?
- Logical Forex Watchdog – Comments on this are below.
Because there was not a very tight dance, I was not just ready to pounce on the trade. I wanted some extra verification before risking my hard-earned money. I waited for price to go through the Magnet Line, be pulled back towards the Magnet Line, then – as price started to exceed the recent high (and the broker quote panel started to light up in excitement) I hit the BUY button.
In regards to the Watchdog, notice how it did not light up until AFTER price had gone through the Magnet Line and then pulled back? If you were in doubt by the price action, this Indicator alone could have provided additional clarity.
So, I entered the trade. What happened?
*** EURUSD Scalp Exit ***
EURUSD SCALP EXIT
I always like when I get a good fill and price moves immediately in the intended direction. At this point, it was just a matter of deciding when to exit the trade. You can see there are several other Magnet Lines showing to the left of the screen. Even though they showed in the past, I was mindful of them – and expecting something to happen when price approached those levels.
I had my finger quick on the SELL button. The first dip in price, I was willing to exit if it didn’t start it’s northward trajectory again before coming back through the level of the Red Magnet Line. Fortunately, it did, so I stayed in the trade. As price moved through the second Magnet Line (Blue) and then pulled back some, that was my time to exit.
What you will notice is that price did continue to go up another 10 pips or so before it really broke down. Some will tell me I am wrong for not taking those profits, too. I will say that (a) it is easier to look at a chart in retrospect and say such things than it is during a live trade and (2) I was happy with the profits on the table. For those of you who want to hold on longer, you can always do so. Sometime it will work out (like it would have here) and sometimes you will get burned (like has happened to me so many times that I often don’t hang on like I used to). Whatever way you want to trade, really own it. You don’t need my approval. Just do it.I should point out that I held on longer than usual for this trade. No matter what, profits are good. All profits. Compounding my profits for larger lot sizes next week is even better.
For me, I was happy with my pips today, with minimal stress, and all of about 15 minutes from the time I sat down until the time I exited the trade. In fact, writing this blog is taking longer than the actual trade itself!
***
If you are still struggling trying to decide what type of trader you want to be, maybe now is the time to check out Logical Forex and decide if this is the type of trading for you. It’s not for everybody, that is for sure. But, is it for you?
Happy Trading!
-Scott
