Yesterday I highlighted a potential trade in the EURUSD. A pin bar formed (or more accurately, at the time of my highlighting it, was forming) on the daily charts, and I noted that it was worth watching through to completion. If the pin closed as was, or near enough, then I planned to enter long with a reasonably conservative target and a risk profile defined as per my standard pin bar strategy. In this instance, that’s a stop loss at the pin bar’s tail (because we are looking long).
I noted that the trade was a bit uncomfortable for me, since my overwhelming fundamental bias in the dollar is to the upside, and to trade in favor of a weakened greenback made me a little nervous.
Anyway, price dictates entry, and I ended up getting in long towards 1.096. My stop is at the day’s low, 1.0850, and with an entry at close (1.0887) I’ve got around 73 pips’ worth of reward on offer.
This is pretty much bang on my target risk ratio, give or take the spread, so I’m pretty happy with the parameters.
All I can do now is wait. If things run in my favor (which they very nearly did today) then we’ll have kicked things off with a nice profit. If not, we’ll move on.
Let’s see how things play out…