EURUSD: 3 Trades Which You Can Follow
Updated
The price reached the support zone. How we should trade at 1.17550 level?
We have 3 possible situations when we will have reasons to open long or short trades.
If the price bounces from the support zone, it will be a good signal for buying. RSI reached the oversold zone and it will give a strong bullish signal. Stop orders for long positions should be placed below the local swing low. Profit targets can be based on MAs and resistance levels.
If the market gives us a false breakout, it will be good for buying as well. The stop and profit target can be the same as in the previous example.
If the price breaks the support zone and after that, it is retested as new resistance, we will be able to open short trade following the reversal signal. Stop orders for short trades should be placed above the resistance and the local swing high. Profit targets can be based on the nearest support zones and round number levels.
Risk for all trades must be no more than 2% of the capital.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
We have 3 possible situations when we will have reasons to open long or short trades.
If the price bounces from the support zone, it will be a good signal for buying. RSI reached the oversold zone and it will give a strong bullish signal. Stop orders for long positions should be placed below the local swing low. Profit targets can be based on MAs and resistance levels.
If the market gives us a false breakout, it will be good for buying as well. The stop and profit target can be the same as in the previous example.
If the price breaks the support zone and after that, it is retested as new resistance, we will be able to open short trade following the reversal signal. Stop orders for short trades should be placed above the resistance and the local swing high. Profit targets can be based on the nearest support zones and round number levels.
Risk for all trades must be no more than 2% of the capital.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Note
If the price moves above the support, it will be a false breakout and a new buying opportunity. If the price bounces from 1.17550, it will be possible to short.
Disclaimer
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