Dear graduates,
Today there was a successful scalp in the EURUSD during the afternoon session.
Criteria to enter this scalp are listed below to help understand how the trade was identified.
1) there was previously a uptrend and the 12 noon hourly candle formed higher and traded near the 1.4329. The 1pm candle first traded lower then the low of the previous candle before trading higher. It would not be possible for the 1pm candle to settle as a bigger upclose candle hence increasing the seller's advantage.
2) A quick calculation identified the previous movement of 27 pips is likely to be repeated again in this hour. This allowed for limited seller's risk and thus initated the trade.
3) Entry was made at 1.4219 with stop loss at 1.4229 and target profit level was at 1.4200. This trade's risk reward ratio was 1:2.
4)From the daily homework, having identified the expected news releases and potential market direction to be a upclose day, it would be wiser to close the short position and be on the right side of the market.
Regards,
Siwei.
