FOREX Training Video | London Session March 31, 2008

After a fantastic 'ride the 5' down on GBP/CHF during the London session for a couple hundred pips, we had extended a little too far too fast and a retracement looked likely. In this video we build a trade plan for longing the retracement, in order to take advantage of the profit taking from the short. Using support and short term chart confirmations offered us our entry around 1.9715. By it's very nature this type of countertrend trade is far riskier than normal setups, but with an 80-100 pip potential this one had a decent risk vs. reward. However, as you will see in the video, this one did not play out during our time horizon in a comfortable fashion at all, our reward potential steadily decreased, nearly stopped us out but ultimately gave us our pips. A perfect example of how things do not always go as planned, but with discipline, and a trade plan that you do not deviate from you can keep your calm whether you win or lose. Not every trade plan is a bed of roses.

Author: fxbootcamp
Length: 10:50
Views: 550
Tags: countertrend  divergence  fibonacci  FXBootcamp  GBP/CHF  London  macd  pivot  retracement  Swissy