EURUSD LONG
EUR/USD Trading Plan
Currency Pair: EUR/USD
Capital: $100
Current Price: 1.11144
1. Trend Direction Analysis
Moving Averages:
The short-term EMAs (10, 20, 30) are all above the longer-term EMAs (50, 100, 200), indicating a bullish trend.
The Hull Moving Average (9) at 1.11324 is above the current price, suggesting upward momentum.
The Ichimoku Base Line (9, 26, 52, 26) at 1.10411 is also below the current price, reinforcing the bullish trend.
Oscillators:
Relative Strength Index (RSI): At 74.16608, the RSI is in overbought territory, which might signal a potential pullback, but it also confirms strong bullish momentum.
Stochastic %K: At 89.34308, this oscillator also indicates overbought conditions.
Commodity Channel Index (CCI): At 95.01300, close to 100, indicating strong momentum but nearing overbought territory.
Awesome Oscillator: Positive value at 0.00862, further confirming bullish momentum.
MACD Level: Positive at 0.00366, with the MACD line likely above the signal line, reinforcing the bullish trend.
The overall trend is bullish, but the overbought conditions suggest caution is needed.
2. Entry Point
Given the bullish trend but overbought conditions, an ideal entry point would be on a pullback.
Entry Price: 1.10900 (slightly below the current price to take advantage of a minor pullback)
Rationale: The entry point is just above the 10 EMA at 1.11003 and the Pivot Point (P) at 1.09946, indicating strong support around this area. This level provides a balance between entering the trend and waiting for a minor correction.
3. Take Profit Level
Take Profit: 1.12000
Rationale: This level is slightly below the R3 pivot point at 1.12696, which serves as a strong resistance level. By setting the take profit slightly below this resistance, we maximize profit potential while avoiding the risk of reversal at a significant resistance level.
4. Stop Loss Level
Stop Loss: 1.10400
Rationale: This level is just below the Ichimoku Base Line at 1.10411 and the 20 EMA at 1.10714, providing a strong area of support. If the price falls below this level, it may indicate a trend reversal or deeper correction, justifying the exit.
5. Position Sizing
With a capital of $100 and the desire to manage risk effectively:
Risk Tolerance: 2% of capital = $2
Pip Value Calculation:
- For EUR/USD, with a micro lot (0.01 lots), 1 pip ≈ $0.10.
Stop Loss in Pips: 1.10900 - 1.10400 = 50 pips.
Position Size Calculation:
- Risking $2 on a 50-pip stop loss.
- Position Size = $2 / (50 pips * $0.10) = 0.4 micro lots (0.004 lots).
Trade with a position size of 0.004 lots.
6. Trade Execution
Entry Order: Buy at 1.10900.
Stop Loss: 1.10400 (50 pips).
Take Profit: 1.12000 (110 pips).
Position Size: 0.004 lots.
7. Rationale Behind the Trade
Trend Direction: The bullish trend is supported by multiple indicators, with moving averages confirming upward momentum.
Risk Management: The stop loss is placed below significant support levels, limiting risk while giving the trade room to move. The take profit is strategically set just below a key resistance level, balancing profit potential and risk.
Overbought Conditions: Despite overbought oscillators, the trend remains strong. The entry point at a minor pullback allows participation in the trend with reduced risk.
This trading plan is designed to optimize potential profits while managing risk, leveraging technical analysis to make informed trading decisions.
Currency Pair: EUR/USD
Capital: $100
Current Price: 1.11144
1. Trend Direction Analysis
Moving Averages:
The short-term EMAs (10, 20, 30) are all above the longer-term EMAs (50, 100, 200), indicating a bullish trend.
The Hull Moving Average (9) at 1.11324 is above the current price, suggesting upward momentum.
The Ichimoku Base Line (9, 26, 52, 26) at 1.10411 is also below the current price, reinforcing the bullish trend.
Oscillators:
Relative Strength Index (RSI): At 74.16608, the RSI is in overbought territory, which might signal a potential pullback, but it also confirms strong bullish momentum.
Stochastic %K: At 89.34308, this oscillator also indicates overbought conditions.
Commodity Channel Index (CCI): At 95.01300, close to 100, indicating strong momentum but nearing overbought territory.
Awesome Oscillator: Positive value at 0.00862, further confirming bullish momentum.
MACD Level: Positive at 0.00366, with the MACD line likely above the signal line, reinforcing the bullish trend.
The overall trend is bullish, but the overbought conditions suggest caution is needed.
2. Entry Point
Given the bullish trend but overbought conditions, an ideal entry point would be on a pullback.
Entry Price: 1.10900 (slightly below the current price to take advantage of a minor pullback)
Rationale: The entry point is just above the 10 EMA at 1.11003 and the Pivot Point (P) at 1.09946, indicating strong support around this area. This level provides a balance between entering the trend and waiting for a minor correction.
3. Take Profit Level
Take Profit: 1.12000
Rationale: This level is slightly below the R3 pivot point at 1.12696, which serves as a strong resistance level. By setting the take profit slightly below this resistance, we maximize profit potential while avoiding the risk of reversal at a significant resistance level.
4. Stop Loss Level
Stop Loss: 1.10400
Rationale: This level is just below the Ichimoku Base Line at 1.10411 and the 20 EMA at 1.10714, providing a strong area of support. If the price falls below this level, it may indicate a trend reversal or deeper correction, justifying the exit.
5. Position Sizing
With a capital of $100 and the desire to manage risk effectively:
Risk Tolerance: 2% of capital = $2
Pip Value Calculation:
- For EUR/USD, with a micro lot (0.01 lots), 1 pip ≈ $0.10.
Stop Loss in Pips: 1.10900 - 1.10400 = 50 pips.
Position Size Calculation:
- Risking $2 on a 50-pip stop loss.
- Position Size = $2 / (50 pips * $0.10) = 0.4 micro lots (0.004 lots).
Trade with a position size of 0.004 lots.
6. Trade Execution
Entry Order: Buy at 1.10900.
Stop Loss: 1.10400 (50 pips).
Take Profit: 1.12000 (110 pips).
Position Size: 0.004 lots.
7. Rationale Behind the Trade
Trend Direction: The bullish trend is supported by multiple indicators, with moving averages confirming upward momentum.
Risk Management: The stop loss is placed below significant support levels, limiting risk while giving the trade room to move. The take profit is strategically set just below a key resistance level, balancing profit potential and risk.
Overbought Conditions: Despite overbought oscillators, the trend remains strong. The entry point at a minor pullback allows participation in the trend with reduced risk.
This trading plan is designed to optimize potential profits while managing risk, leveraging technical analysis to make informed trading decisions.
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