2016-02-19_01-09-49eurusd

Dear Traders,

On this eurusd 4 hour chart you see higher highs and lows from number 1 to 6.

The retracement to number 7 took out the swing low at number 5.

Therefore I am inclined to start to only take bearish trades.

If I am a bear then I want to trade only in direction of my bias.

I wait for a retracement against the trend and go short from this point.

A better risk reward will be provided where I may also have a tighter stop loss.

On the chart this point would be number 10.

If price goes there then I wait for a reversal pattern like an evening star, hanging man or bearish engulfing candle before taking a short trade.

The stop loss goes over the area of resistance and the target would be at number 11 at 1.10000.

BEST OF PIPS

2 thoughts on “EURUSD Chart”

  1. Charles Bidner says:

    Thanks Nuno. I like the way you have set out your analysis here. I actually already have a short trade trigger at 1.1200 with SL @ 1.240, so close to what you are suggesting (I think). I have had that trade set up sitting there for a few days now, waiting patiently. Maybe a spike up on London open today, with a move down through todays session? My SL is quite tight but will see what happens. If nothing happens on todays session may delete the order for the weekend.

  2. Ryan Gandalf van Jaarsveld says:

    Thanks Nuno

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