Bullish Transition on EU, swing idea
Updated
Hello all, here is my breakdown of what I am seeing on EU
Just to give context the:
Orange line - 4h
Yellow line - Daily
Red line - 1h
White line - Monthly
Black line - Weekly
I am more of a dynamic trader and will intraday, or swing depending on the situation and sometimes can take my entries on the 1m like i did for this position which allowed for me to have a 5 pip Stop loss in this instance
I use dynamic trend lines meaning i move them and adjust them as the market develops and when candles close, so what may look like a lot of lines really isn't what I have up all the time. This is just for visual aid to show you what I can see without the lines (sometimes)
now with that out of the way.
My main thought was based on the weekly which is where my main fib is based on:
Usually the market after a transition on the pullback dips a bit lower than the previous support area in this case pulling back to the red zones on my fib which usually happens on most timeframes after a break of structure
That paired with the daily rejecting the support (yellow line) and showing exhaustion in that area and the market rejecting the daily zone that aligns with a monthly support further builds this case. Let's break it down a bit deeper though!
Here on the 4h we can see the highlighted candles showing where the true break of structure on the 4h happened. We can see noted the previous resistance that was broken and then the candles that confirmed that break. Then we had the true pullback during NY session that confirmed the retest. Now the first pullback may have been thought to be a true pullback but it wasn't because it was two full candles and not multiple candles indicating actual volume and direction but instead just consolidation which can be seen on the lower timeframe in that area
As you can see I had multiple confluences to be able to enter and all i did was wait on the 1m once the market was in my zone and enter once I started to see rejection and saw that the market was beginning to make its new HL. That mixed with small bit of uncertainty in the fundamental realm with the new people in the GOP in the US and no idea about tariffs and rate cuts most things are at a 50/50 right now which i think could lead in the favor of the Euro but time will tell and I will continue to monitor my position but this is a long term swing and I will try to scale in if possible but if not then I will manage my one position to my 1.13422 TP
All of my confluences align as far as zones sitting on top of support & resistance and that aligning with my trading times and sessions as well as the candle stick formations, make sure that things make sense and you are patient!
Just to give context the:
Orange line - 4h
Yellow line - Daily
Red line - 1h
White line - Monthly
Black line - Weekly
I am more of a dynamic trader and will intraday, or swing depending on the situation and sometimes can take my entries on the 1m like i did for this position which allowed for me to have a 5 pip Stop loss in this instance
I use dynamic trend lines meaning i move them and adjust them as the market develops and when candles close, so what may look like a lot of lines really isn't what I have up all the time. This is just for visual aid to show you what I can see without the lines (sometimes)
now with that out of the way.
My main thought was based on the weekly which is where my main fib is based on:
Usually the market after a transition on the pullback dips a bit lower than the previous support area in this case pulling back to the red zones on my fib which usually happens on most timeframes after a break of structure
That paired with the daily rejecting the support (yellow line) and showing exhaustion in that area and the market rejecting the daily zone that aligns with a monthly support further builds this case. Let's break it down a bit deeper though!
Here on the 4h we can see the highlighted candles showing where the true break of structure on the 4h happened. We can see noted the previous resistance that was broken and then the candles that confirmed that break. Then we had the true pullback during NY session that confirmed the retest. Now the first pullback may have been thought to be a true pullback but it wasn't because it was two full candles and not multiple candles indicating actual volume and direction but instead just consolidation which can be seen on the lower timeframe in that area
As you can see I had multiple confluences to be able to enter and all i did was wait on the 1m once the market was in my zone and enter once I started to see rejection and saw that the market was beginning to make its new HL. That mixed with small bit of uncertainty in the fundamental realm with the new people in the GOP in the US and no idea about tariffs and rate cuts most things are at a 50/50 right now which i think could lead in the favor of the Euro but time will tell and I will continue to monitor my position but this is a long term swing and I will try to scale in if possible but if not then I will manage my one position to my 1.13422 TP
All of my confluences align as far as zones sitting on top of support & resistance and that aligning with my trading times and sessions as well as the candle stick formations, make sure that things make sense and you are patient!
Trade active
I have adjusted the position and entered based on the reaction at the monthly support which aligns with the Daily zone as well and we are officially getting that "deeper pullback" my target is still the same I just jumped the gun before hand
Trade closed: stop reached
SL reached
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