EURUSD Trade Breakdown – How to Think Like a Real Trader
Most people look at charts and say:“Head & Shoulders… FVG… it’s going down.” That’s surface-level thinking. Let’s break this down the right way so you can actually execute this in the market. 1. Start With Market Structure (Your Foundation) Before anything else, ask: - Are we making higher highs or lower highs? - Who’s in control? What we see: - Price pushed up → failed - Then created lower highs + lower lows This confirms: BEARISH MARKET STRUCTURE This is the ONLY reason we even consider sells. 2. Understand Where Price Is Right Now Price is not just “dropping” It is: Pulling back in a bearish trend That small move up (right shoulder area)? That’s not buyers winning. That’s smart money re-entering sells 3. Identify Your Sell Zone (Premium Area) We don’t sell randomly. We sell when price returns to a premium level. In this case: - Around 1.1720 – 1.1740 - Near EMA resistance - Near previous structure This is where sellers have an advantage. 4. Stop Relying on Patterns Alone Head & Shoulders is NOT the reason price drops. It simply shows: - Liquidity taken above highs - Buyers getting trapped - Sellers stepping in The real driver = liquidity + order flow 5. Wait for Confirmation (This is where most fail) DO NOT enter just because it “looks right” Wait for: - Bearish engulfing candle - Rejection wick - Break of a minor low No confirmation = No trade 6. Trade Execution Plan Entry: - After confirmation in the 1.1720–1.1740 zone Stop Loss: - Above the recent high (right shoulder) Targets: TP1 – Fair Value Gap (~1.162–1.160)→ Price rebalances inefficiency TP2 – Order Block (~1.156–1.154)→ Previous institutional buying zone 7. What’s REALLY Happening Behind the Scenes This is how institutions move price: 1. Push price up → take liquidity 2. Sell into that liquidity 3. Price retraces → traps buyers 4. Market continues down → fills imbalances You are trading WITH this, not against it. 8. Invalidation (Know When You’re Wrong)