EUR/USD Long Position: Breakout from Daily Open & 4H Deviation
EUR/USD Long Position Strategy: Breakout from Daily Open & 4H Candle Deviation
Trading Plan:
1. Identify Key Levels:
- Daily Open (D OPEN): 1.10739 – This level serves as a critical point for potential breakout.
- 4-Hour High (P4HH): 1.10833 – Represents the recent 4-hour high.
- 4-Hour Low (P4HL): 1.10717 – Marks the recent 4-hour low, crucial for setting a stop-loss.
2. Breakout Confirmation:
- Look for a strong bullish candle that closes above the D OPEN level at 1.10739 on the 1-hour chart.
- For additional confirmation, observe if the 4-hour candle also closes above the daily open. This will indicate a stronger trend continuation.
3. Entry:
- Enter a long position upon a confirmed close above the daily open level (1.10739) with increased volume and momentum.
4. Stop-Loss:
- Set the stop-loss slightly below the recent swing low to minimize risk, ideally just below the "P4HL" at 1.10717.
5. Take-Profit Targets:
First Target: 1.10833 (4-hour high level, "P4HH") – If price reaches this level, consider taking partial profits.
- Extended Targets: If the bullish momentum continues, look for higher targets around 1.10900 and beyond.
6. Risk Management:
- Risk-to-reward ratio should be favorable, ideally 1:3 or higher. Adjust stop-loss and targets as needed based on real-time price action.
Technical Rationale
The daily open level often acts as a significant pivot, where price action can either reverse or continue its trend. By combining this with the deviation of 4-hour candles, this strategy aims to capture early signals of bullish momentum and ride the breakout for potential gains.
---
Always adhere to your trading plan and risk management rules. Good luck!
Trade closed: target reached
Yay! 
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.