The higher you shorted this pair, the less you are worried for the retracement. And that explains the importance of follow through, where to put your SL, profit target , etc.
The smaller your position size (or minimal) and if the trend works to your favour, at some point, you gotta decide to take profits or risk evaporating it. And it is after you had taken profits, the trend continues again. That is when you kicked yourself in the butt and say;"I should have added more".
Actually, you probably added more but not in this pair but other trading opportunities for fear of concentration risk or you want to diversify your risk.
Stick to what works for you.
At this stage, the price action has broken down from the support level at 1.400 and is now in the retracement stage. Wait for it to breakdown from the channel first before taking your short position. It's hard to tell how long it will takes to retrace and how high it will go. It could also break out of 1.400 and do a trend reversal, for which you know the price fall was a false breakdown.
The smaller your position size (or minimal) and if the trend works to your favour, at some point, you gotta decide to take profits or risk evaporating it. And it is after you had taken profits, the trend continues again. That is when you kicked yourself in the butt and say;"I should have added more".
Actually, you probably added more but not in this pair but other trading opportunities for fear of concentration risk or you want to diversify your risk.
Stick to what works for you.
At this stage, the price action has broken down from the support level at 1.400 and is now in the retracement stage. Wait for it to breakdown from the channel first before taking your short position. It's hard to tell how long it will takes to retrace and how high it will go. It could also break out of 1.400 and do a trend reversal, for which you know the price fall was a false breakdown.
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oops, it was too eager to drop than I expected...
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You see, if you want to pay attention to the trees in the jungle, you tend to lose the bigger picture here :
