2016-03-01_19-24-58eurusd

Dear all,

The colourings of the charts have the purpose to show the direction of the market.

To put things into perspective I would advise to only take the long side of a trade as long as higher highs and lows are provided.

This scenario happened at the left part of the chart as can be seen with the blue numbers.

The right part of the chart shows a bearish scenario where only short trades should be taken.

Like this you trade in direction of the trend, it is the path of least resistance, you will be earlier in profit and the moves are likely to be bigger yielding more profits.

Therefore I like to prepare with time only at this time thinking in how to short the market on this eurusd 4 hour chart.

My advise would be to go short with an overbought stochastik indicator and preferably from a level of resistance.

This might include the 21MA, the 55MA or from the zone where the number 15 is inserted.

Please take note that two pieces of news will come out tomorrow which are the ADP numbers and crude oil inventories.

Remember that we want to take the short side and that momentum on this chart is turning bullish.

Therefore should price provide a bullish retracement then we want to take a overbought stochastik down to continue to right the trend.

BEST OF PIPS

 

One thought on “Preparing to take action after the retracement”

  1. Miles Nummularius says:

    Thank you Nuno for the analysis, let’s see if it retraces to enter short!
    The area at 15 number seems at role reversal, was previous resistance and seems also about 50-61.8% Fibo retracement. Do you also consider pivot points or you just short the 21 or 55 MAs and Stochs?

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