Forex trading is all about limiting the risk & get the best of the trades with a limited opportunity is in sign in a week. But if you target only few pairs & price Action on hourly and below, then probably you are on the right path. Looking too long time frames requires much larger stops, even target is very good and trend is with the entry. But trade like such are quite rare & lot of drawdown is seen on the table if you look to overtrade to compensate for your earlier losses.
Take a look at the chart below. Price has already engulf the earlier flag & now will fake out the support as it has falling short of earlier starting point of decline. PA stands for long opportunity near the level mentioned below. Well worth to take the opportunity with such a small stop & very six times reward. I’ll update the blog again once entry is taken & this trade is valid for only 24 hours & let see if we can grab this opportunity tomorrow.
Pending Buy limit of Nzd/usd @0.6333
stop 0.6327
Target 0.6366