Euro / U.S. DollarEducation
EURUSD LONG TRADE 1:4 RISK:REWARD *EDUCATION*
On the 29th of May I set up a buy order on EURUSD and today hit my take profit of 83 pips. Here are a few reasons I took the trade that you may be able to learn from. Firstly, we can see the clear level formed at 1.11291: Although I usually try to not enter long trades in a clearly bearish market, this level had clearly been a problem in the past as price has failed to breakthrough twice before. Next, we can see a very strong bearish momentum from the 27th of May coming down and stopped by this level as it hung around trying to break through. This is when I set my order. I placed the entry level slightly below my plotted line to try to gain a few more pips and tighten up my stop loss. Next, my stop loss was placed at 1.11021 as this was 5 pips below the lowest low from this line. Finally, my target was set at 1.12061 which was a push just above the descending trendline to try to maximise profit. With my 2% risk on this trade my account grew by 8% and shows that most of the time there is nothing stronger than simple price action analysis.
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