It happened so, that I always was better with reversals for some reason and catching minor retraces never was my strong side. That developed a set of conditions I usually watch for to avoid poor with the trend entries. One of those conditions is to be very suspicious about taking a with the trend setup, when it's close to some bigger timeframe support (diagonal, aka trendline or static aka horizontal price level) and when main (5-min in my case) timeframe trendline was broken. In the case discussed both of those warning conditions existed, that's why looked more for longs. Plus a little bit of macro factor, had a feeling that market should rally after ECB announces rates. But that is of secondary importance here, you can't base your trades on fundamental view as the main component.
I see your reasoning, and it is very clear. There was a support on the hourly, daily and the steep 5M trendline was broken. Also there was a bullish engulfing candle on the 5M.
Yes and some of my buddy traders went long right there a bit before me, but I waited till after ECB rates because Oanda tends to widen the spread around big news and it was dangerous to enter with tight stop.
Looks pretty straightforward to me. Why would someone have been stopped out? Unless I'm looking at the wrong part of the chart or misinterpreting what you mean. Could you clarify? Not a big deal or anything, but as I perused the charts it came to mind.
I meant that one could be stopped out break-even if moved the stop-loss to that point. Obviously not mandatory for any trader, I simply judged from my personal point of view, which is to move stop-loss to break-even as soon as possible, because good trades go in the money quickly as a rule and those which don't are subject of immediate suspect.
Trendline breakout retest setup just occurred in the Euro: http://www.cornixforex.com/2012/02/trendline-breakout-re-test-setup/
...and another trade of the same kind, also very clear. Euro is rich for those today. http://www.cornixforex.com/2012/02/another-trendline-breakout-pullback-setup/
Another trendline breakout pullback trade, and I think it's enough of them for today. http://www.cornixforex.com/2012/02/another-trendline-breakout-pullback-trade/ Overall it's a scalping day for me today, no really running swings.