How to recognize price action and trade it: 10/30 Wedge on Euro (M6E)- $375 return to $20 risk

It's important to recognize a trading environment / trade-able price action. The main reason it's important is because it will preserve your cash when you recognize conditions that you should not be trading in. This may mean not having a trade for hours, maybe even days. But when the price structures itself in a way that signals a trade-able environment, you need to act on it. In this type of a profession, you are always working. This work includes simple things like checking whether price is pressuring the high or low of the current day, while you're out running errands. It doesn't mean you're trading 24/7, the trading aspect of it should be very minimal because perfect price action occurs much less than non trade-able environments. So your job as an analyst is the most important, the trader part of it only executed orders based on what the analyst decides.

I want to share an example from this evening:
- I received a text alert on my phone from cnbc, the following article: Japan Intervenes to Curb Yen's Strength
http://www.cnbc.com/id/45098537
- As an analyst you formulate the following opinion using economics. Yen weakened = Strong US Dollar = Weak Euro.
- I trade the M6E Euro futures, therefore I looked on my phone on ThinkorSwim to see the price of the Euro.
- My last note in my phone from Friday was that the Euro was in a wedge and to expect a breakout to either side upon fundamental shift.
- I took the following trade, selling the top of the wedge with contract 1, max risk of $20:

- I was able to eventually add 2 more contracts into the position.
- I had a target of 100 pips for each contract, which would result in a profit of $375 if max targets are met.

I met target on the first 2 contracts, will be looking to add into the short position if movement increases. If not, I will move my stop below entry price, leave my target, and go to bed. I will update tomorrow.

Goodnight and good luck this week trading!