EUR/USD Long Position: Breakout from Daily Open & 4H Deviation
Updated
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.
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Always adhere to your trading plan and risk management rules. Good luck!
Trade closed: target reached
Yay! 
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