10/12/09 EURUSD – Failed Breakout – No Trade – Patience Required

So I’ve started my new routine of being in the office for 5.30am London time in order to capitalise on the changes in the markets.  Of course after several weeks of great early morning moves this morning was somewhat dull and uninspiring.  Cable wasn’t giving me any love this morning so I went hunting for other opportunities.

I came across a period of consolidation on EURUSD as you can see below.

At Point 1 price started to go sideways.  The trend was still down so I placed an order to go short below the range at 1. 4696 with a stop at 4723.  My plan was to remove a good part of the trade just in front of S1 at 4677 , which was also previous support, move my stop to Break-even and let the trade play out.

At Point 2 we can see that price actually broke north and ran strongly back to, and beyond, the main pivot.  At this point my initial trade idea was invalidated so I removed my order and went back to looking at markets.

We can see that later on that price did break down past my entry but not with any conviction.  By this time I had already looked at other charts, decided it was going to be a dull day and was firmly sat on my hands.

As I’ve mentioned before I am involved in Profit Planning, not Trading.  I plan my trades and trade my plans.  If my ambush is not triggered then I just move onto the next set-up.  I never try and chase price.  That’s a mugs-game.