Well another day for another analysis on the fast 5 min EURUSD chart.
The goal is to point out patterns that are easy to recognize and to remember so that action is taken on instinct once the pattern forms.
We start the day by choosing the EURUSD chart which is one of the cheapest pairs to trade and that trades highly technical.
No liquidity issues here so one may concentrate just on analysis and on pulling the trigger.
I like to trade double bottoms when they are easy to recognize and not so much if one low is a little bid lower then the other low.
What I mean by that is how much lower can it go to be still a double bottom? It depends on the trader and his system which makes it once again a highly individual decision.
But the Gods of this pair had pitty on us and made our life easier and you may notice the two black arrows with a perfect double bottom.
The other good part is that price is at support so please Go Long.
Uf… there you have your first decision and the first trade of the day.
Now we want to see price going up and giving us signs that it might reverse. Where?
Well most likely then not at an area of resistance.
At which area does price have difficulties to overcome?
Well the huge spike candle is the first indication that sellers are up there.
And the a beautifull tripple top is provided from where?
From resistance so please Go Short.
Uf, that was the second decision and the second trade of today.
Lets take one step at the time and see what we may lern from tomorrows price action.
Best of Pips