HOW TO FIGHT RETRACEMENT IN FOREX

Retracement  in Forex is the worst consumer of pips. It can consume the entire profit you made in a whole month.   This is why you need to know the ATR of each of the currencies. especially if you are a day trader. Although it happens in a higher T.F too  just like it did with EUR/usd today .If you read through my post you will see that i said i have taken some profits and am leaving some to run.  It was because of retracement.

Now this is what i do . Usually when am day trading, I trade between 3 am and 10 am GMT . As early as 8am  i take profit and allow some to run with a trailing stop.  Or i take my profit when i see my arrow appear in the opposite  direction of the trade, not the trend, on a lower T.F . Every trend retraces .
Once the ATR is reached for the day you can never predict the extent of the retracement that was what happened with EUR/USD today. And this why i advocate patience.

So how do you now fight it? Once you are conversant with the ATR of the pair you are trading. Please don't be too greedy take 50% profit and allow others to run on trailing stop. I hate giving back profit because Forex is nasty you may never regain lost grounds.

So please take note of these lesson its very important .
See You At The Next Level

 N.B-------Please be careful of going long on GBPusd It may likely rest tomorrow before resuming the Northward movement.