Fiber (EURUSD) 310816

How to trade this plan
1. Support and resistance zones shown in green and pink with arrows indicating direction. Bulls buy at support and bears sell at resistance.
2. Keep in mind that when price breaks through support the level will be tested in future as resistance – this is called role reversal.
3. Market direction indicated by 21 and 55. Take note of where the 21 is in relation to the 55 and where price is in relation to the 21. Also take note of the width between the two moving averages. If price is below the 21 you may consider looking for selling opportunities. If the 21 is dynamic resistance then if price falls from the 21 it predicts a lower low – the opposite applies when the 21 is dynamic support. If the 55 is dynamic resistance then if price falls from the 55 it predicts a double bottom – the opposite applies when the 55 is dynamic support.
4. Direction of price is indicated by 5 and 8 MA’s and stochastic cycles. Remember that when you line up higher and lower time frames, price is going in the same direction. The goal is to line up market and price while using support and resistance as your leading indicator.
5. Pay attention to reversal patterns on higher time frames when in a trending market – a reversal pattern could mean the end of a trend. Keep in mind that a reversal pattern that is not at support or resistance is meaningless.
6. Pay attention to reversal patterns on lower time frames when confirming your entry and if you want additional confirmation wait for a 5 8 cross on M5 or M1 before entering your trade. Remember – we enter on the second chance on the 5 minute chart.
7. I have added a summary under the H1 chart indicating observations and trade plan.

Note:
a. Please read Kate’s post on Forex Major Currencies Outlook everyday so you are up to date with the latest news. You can follow Kate here
b. Please be aware of risk events for the day by using the Forex.Today calendar
c. Watch Wayne’s webinar daily at 13:30 SAST or catch the recording on the Forex.Today Youtube Channel

EURUSD Daily

EURUSD H4

EURUSD H1

Market is bearish. Note the target for the week was WS1 though at the time of writing this post there is no indication of a reversal of trend and no fundamental data giving me any indication of dollar weakness. I am looking to sell at resistance marked off by the pink zones. As per my USDJPY plan for today, an oscilator is used in a ranging market. In a down trend we sell lower highs until a reversal pattern is confirmed by a higher high on a higher time frame (H1, H4, Daily). Remember to jump into M5 when confirming your sell. We want to see a lower come off resistance followed by a lower high at role reversal or in the fib zone. SL and TP can be managed according to pivot points. So if I am selling at WM2, for example, my target would be WM1 and my SL would be above WPP. Of course if you are intraday trading you can use the daily pivot points on H1 in the same way.

5 thoughts on “Fiber (EURUSD) 310816”

  1. Looking forward to buying opeurusd h4 later today,or would it be too early?

    1. Your strategy should be focused on trading in the direction of the market – if the 21 is below the 55 then the market is bearish so you should be selling at resistance. The only time you change is when you see confirmation of a reversal pattern

  2. Profile photo of Miles Miles says:

    Thank you Ryan!
    Why the target for the week was WS1, just because the week opened at WR1?