2 minutes into the NY session, we see a great pattern emerge. The AUD (orange line) is strong with a steep line to the far right showing huge momentum in the market.
The EUR (pink line) is weak also with a steep line indicating huge momentum downward.
From the time we see the momentum show up on the indicator, price for this pair goes down about 15 pips which is just 5 pips short of our 20 pip breakout strategy profit target.
So, this trade would have been a loss (which is unavoidable of course).
However, because we trail the stop, the loss was only 5 pips instead of the original 20 pips we had at risk.
This is how you minimize losses when a trade doesn’t work out.
You can watch the entire video analysis below: