The market was tough today. My trade today was a prime example of why it is critical to wait for the retest. I got impulsive and was enticed by the spike around 8:00 AM this morning that blew through the 21 EMA on the H4. That is a significant level that hasn't been broken since the 18th. Shortly after taking the trade price bounced right off daily S1 and went right up and broke back through the 21 EMA and daily PP and took me out quickly. If I would have waited for the retest I would have still went short but not until the 21 EMA was broken and retested after this reversal. I break this rule much less often now, but it is a rule that I should follow 100% of the time. I will be looking to short EU as long as price remains below 21 EMA H4. Right now price is meeting resistance at the weekly PP (1.3822). Stochastics on H4 and M30 are in oversold territory right now so EU may be due for a pullback before declining further.
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