When support lines are unsupportive

What I learned today.... The reason for taking trade was because the level on which I bought NZD/JPY coincided with a strong support level from the past that you can see in the first picture in the rectangle price blasted off that zone and it seemed like an opportunity to be long because price was so low in the range.  Now there could have been other reasons why I did this maybe because I had to leave go someplace or because I felt like I had to be in a trade but it did not make sense to go countertrend.  This was meant to be a pair that I'm using to protect my AUD/JPY long position, instead on-the-fly I created a chance to pull some extra profits at the market but instead the market taught me a lesson.

What is very nice about stops (stop the losses) is that they can prevent further losses from occurring like you can see the second picture.

The first red light is where I entered the long position and then I was taken out at  the green line.  The blue pointing trendline shows how much worse things would get if I kept the position and further allowed the losses to continue

It is so much more interesting to talk about games but from time to time we must a very open about controlling losses

The games in the euro where on target with what I expected.  And you go back and look at the other post the 50% retracement it created a point of control where price fell out of the zone and continued dropping the entry was a short sale and the exit was a buy to cover.