What if previous day's high is broken??

So here are the dilemmas :p

What if the prev day's high is broken? what do we do? buy or sell?. the first scenario that could happened is that u short on the highlighted area on the first chart. u short on cable because it was at prev day's high,early asian session bla bla.:p. for whatever reasons. so do we still hold the short position or just let it hit our stop loss?

so these are what u can consider to do:

1. for conservative traders,u might just cut your loss.

2. but if u short at the first time it touched the previous day's high, u should be able to make some money there (look at the chart carefully) or when the position was making money, u might move the stop loss to break even - so u lost nothing!

3. if u r still holding d losses, u have to remember this - when the euro opens, u will have at least one last chance to exit!

the anatomy of broken day's high

1. usually day high is broken during euro session. from the chart above, a big bull candle of 60 pips indicates that the high of previous day has been BROKEN!

2. so where do we place our trade? we will look to buy at the level/area of the previous day high.

3. most of the time, if u place your trade at the first time it touched the broken level, surely u will make money! :)

4. u must exit or close some of the positions the near the first resistace. 30 to 50 pips is good enough!

study the chart i posted carefully and u will see many opportunities :)