EURJPY Day Trade *LEARN TO DAY TRADE FX CURRENCIES*Here is another example of how to day trade FX currencies using a simple combination of Daily Pivot Points , 2x EMA's and the trendline tool on TradingView.
The first entry is based on the bullish trendline being broken and a retested. A lower low was made with the break of the TL and therefore this retest was a new lower high signalling a trend reversal. Price also rejected the daily pivot level and the 15 minute 50EMA. Because this is a fresh trend reversal, the 200 and 50 EMA's were not aligned but that is quite often the case with this style of entry.
Stop Loss is always placed 10 pips above the current high.
Target 1 is always the daily S1 level. If price manages to break through here with some momentum then it is highly likely that it will reach the daily S2 or even S3 levels. If you hold the trade to these levels then your R:R ratio will be increased dramatically.
The second trade opportunity came a day later. This entry is again based off of price rejecting the daily pivot level but it had done this 3 times in the same day so it is safe to assume that the Pivot level is acting as a strong resistance. The 50 and 200 EMA's were aligned and confirming a bearish trend (50 below 200) and the 15 minute timeframe chart had made a flag continuation pattern.
Stop Loss is always placed 10 pips above the current high.
Target 1 is always the daily S1 level. If price manages to break through here with some momentum then it is highly likely that it will reach the daily S2 or even S3 levels. If you hold the trade to these levels then your R:R ratio will be increased dramatically.
50ema-rejection
Shorting GBP/AUDShorting GBP/AUD as today's high test bar has shown resistance to ~2.0870, the falling trend line and 50 ema all of which have lined up close enough to a tee. Stochastic and RSI also show bearish hidden divergence .
entry - below low of high test bar
stop loss - above high of high test bar
target - at previous low or lower
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Short again on AUD/USDAnother short set up on AUDUSD since downward momentum on the previous set up (idea linked) failed is on offer. The present set up comes after a deeper pull back, organic in a sense, into the 50 ema which also lines up with a previous level of support (~0.7250), now acting as resistance, and the 0.618 FIbonacci level. Price closed as a high test bar. Oscillator convergence is visible.
entry - below low of high test bar
stop loss - above high of high test bar
target - at or below previous low
A sell-off may continue on the S&P500, Nasdaq 100 and UK100On the S&P 500 and NASDAQ100 indices, closing as a high test bar in the resistance zone, and a bearish engulfing bar on the FTSE100 (UK100) stock index, a sell setup is in order suggesting potential bearish continuation on these three (CFD) indices, following the recent sell off on major indices.
1. S&P 500
The rejection/resistance zone on the S&P 500 comprises the following:
- retest of the 50 ema;
- retest of ~2011; and
- 50% retracement, and close below.
Oscillator convergence, as shown on the chart, is seen as an additional argument to enter a potential continuation of seller based momentum in this index.
entry - below high test bar
stop loss - above high bar
target - previous low or lower
2. NAS100
Since the major global indices demonstrate price behaviour correlation, an almost exact set up as on the S&P 500 is also forming on the NAS100.
entry - below high test bar
stop loss - above high test bar
target - previous low or lower
3. UK100
The FTSE100 is in a very clear down trending environment. Three key reasons of a potential continued price decline are:
- close as a bearish engulfing bar;
- a strong bout of resistance at ~6250; and
- rejection of the 20 ema.
entry - below low of bearish enguling bar
stop loss - above high of bearish engulfing bar
target - at previous low or lower
Selling EUR/USDLooking at the following to sell EUR/USD:
- inside bar
- 50 ema rejection
- resistance at @1.1100
- Fibonacci cluster:
- 0.786 Fibonacci level rejection from previous swing high to swing low and closes below
- 50% retracement between first swing high at the top of the trend line and closes below
- trend line rejection
- Stochastic and RSI convergence
entry - below low of inside bar
stop loss - above high of mother bar
target - previous swing low or lower
Sell sign on EUR/GBPUsing the following to back a short entry on EUR/GBP on the daily chart:
- inside bar
- resistance at ~0.7120
- mother candle rejects:
- 50 ema and closes below
- 0.786 Fibonacci level and closes below
- Fibonacci cluster
- falling trend line for the 4th time closing within the downward trend channel
- Stochastic hidden bearish divergence (comparison of swing highs), and Stochastic and RSI convergence
entry - below low of inside bar
stop loss - above high of mother bar
target - previous swing low or lower