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)
If price:
  • Breaks above the right shoulder
  • Holds above it
Your bias is invalid
No ego. Flip or stay out.
9. The Sniper Checklist
Before EVERY trade:
Is higher timeframe bearish?
Are we in a pullback (premium)?
Did we get confirmation?
Is there clear downside target (FVG / OB)?
If not, you wait.
Final Lesson
You don’t get paid for:
  • Spotting patterns
  • Predicting moves
You get paid for:
Executing high-probability setups with discipline and risk control
Stay sharp. Stay patient. Trade like a professional.
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Errol Sims
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EURUSD Trade Breakdown – How to Think Like a Real Trader
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