Symbol: EUR USD
Trading Strategy: Breakout Buy Stop Trade
Type of Trade Call: Long
Indicators: Price Action, RSI Divergence, and RichTL
Entry Point: Long position taken upon the breakout of the previous lower high (resistance) at 1.07728
Entry Price: 1.07728
Stop Loss: 1.06251
Take Profit 1: 1.08612
Take Profit 2: 1.09244
Take Profit 3: 1.10239
Risk-Reward Ratio: 1:1.70
Description:
As a professional trader, it has come to my attention that the EUR USD has recently broken a strong LH trendline on the daily timeframe, and this occurred on the third attempt. Based on the conventional rules of trading, the EUR USD price underwent a pullback to retest the broken trendline, followed by the formation of an uptrend bullish channel movement, characterized by a series of HHs and LHs. However, the EUR USD was unable to surpass the previous lower high, which is a critical resistance level that requires monitoring.
Should the resistance level be breached, we can expect a strong bullish rally based on Price Action analysis. Given this opportunity, I have decided to take a long position upon the breakout of the previous lower high, which also serves as a resistance level. I believe that this trading strategy holds the potential to yield significant profits. My stop loss has been placed at 1.06251, which is just below the previous level of the Higher Low, to manage risk.
My take profit targets will be further resistance levels on the chart, namely R1, R2, and R3. This enables us to achieve a risk-reward ratio of 1:1.7, which represents a balance between potential profits and risk management. Upon booking partial profit at R1, my plan is to trail the stop loss to the Fibonacci retracement level of 0.618 of the rally between the entry zone and R1 zone, with the objective of trailing the profit to R3.
In conclusion, based on the technical analysis, I am optimistic that this trading setup holds the potential for success. Nonetheless, it is crucial to remain vigilant and monitor the price action closely, while being open to adjusting the trade strategy as new information arises.
Trading Strategy: Breakout Buy Stop Trade
Type of Trade Call: Long
Indicators: Price Action, RSI Divergence, and RichTL
Entry Point: Long position taken upon the breakout of the previous lower high (resistance) at 1.07728
Entry Price: 1.07728
Stop Loss: 1.06251
Take Profit 1: 1.08612
Take Profit 2: 1.09244
Take Profit 3: 1.10239
Risk-Reward Ratio: 1:1.70
Description:
As a professional trader, it has come to my attention that the EUR USD has recently broken a strong LH trendline on the daily timeframe, and this occurred on the third attempt. Based on the conventional rules of trading, the EUR USD price underwent a pullback to retest the broken trendline, followed by the formation of an uptrend bullish channel movement, characterized by a series of HHs and LHs. However, the EUR USD was unable to surpass the previous lower high, which is a critical resistance level that requires monitoring.
Should the resistance level be breached, we can expect a strong bullish rally based on Price Action analysis. Given this opportunity, I have decided to take a long position upon the breakout of the previous lower high, which also serves as a resistance level. I believe that this trading strategy holds the potential to yield significant profits. My stop loss has been placed at 1.06251, which is just below the previous level of the Higher Low, to manage risk.
My take profit targets will be further resistance levels on the chart, namely R1, R2, and R3. This enables us to achieve a risk-reward ratio of 1:1.7, which represents a balance between potential profits and risk management. Upon booking partial profit at R1, my plan is to trail the stop loss to the Fibonacci retracement level of 0.618 of the rally between the entry zone and R1 zone, with the objective of trailing the profit to R3.
In conclusion, based on the technical analysis, I am optimistic that this trading setup holds the potential for success. Nonetheless, it is crucial to remain vigilant and monitor the price action closely, while being open to adjusting the trade strategy as new information arises.
"London-Based Trader | Certified Technical Analyst | Intraday & Scalping Specialist 📈📊 #Forex #Commodities #Indices #Crypto"
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.
"London-Based Trader | Certified Technical Analyst | Intraday & Scalping Specialist 📈📊 #Forex #Commodities #Indices #Crypto"
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.