If you took this intraday level, set 10 pips PT and -12 pip SL it would ended in full stop loss. However I took almost full profit (+9.2 pips). Here are my thoughts that led me to trade the level as I did.
- there is a long rotation few pips before my short level. Market is accumulating volumes.
- there is high probability that this long cummulation of volumes will end up in a quick move (up or down)
- if it shoots up I will probably have an opportunity to enter for a better (higher price) – that’s exactly what happened – I entered for a +2.3 pip better price
- my profit target of 10 pips was just a bit below very strong support level (support made by the previous cummulation of volumes)
- it was safer to exit my trade sooner (at this support) than to take a risk.
- I was carefull even more because today is ECB event day and eur/usd could be pretty unpredictable and wild.
Here is a screenshot of this trade taken from my trading platform: