Nice little long trade on the RL with Euro$ at physc level 1.2200

Maybe we will fill the 'mountian' but it doesnt matter if the RL holds later as long as we get a bit of upwards price reaction-action first infact if price passes down through you could go short ona retouch of the RL! Please remember that 5min TF is the optimum resolution for trading these lines and anything higher does not show accurate price action. Objective is the apex around 1.2240...stop nice n cheap just under the RL say 5 pts.








1615 GMT+1 Perhaps on reflection this trade did not have a high enough risk:reward ratio to warrant it and i was lucky to have been stopped out a few ticks over break even.
The tendancy of price to retouch (most times but not always) a valid RL (and we now know already that this a valid R L because of the above trade and past price action) once it passes through the line gives us a possible entry but not with a high enough probability on it's own to make a trade. The same goes for buying blindly any price touch of a RL hoping for a bounce.
The above example from today is complicated further by the fact that there are important Centre lines (aqua blue & slate blue) from one of the current dominant forks controlling price and another that is i think the long term centre line on the daily/weekly charts ****** see chart below.