Let us start with the eurusd 5 min chart and exploit it to the best of our means.
Number one on the chart for the uk traders provided us with a double top. The psyche number 1.12000 is in control.
We can also see that MACD is showing a bearish divergence.
The 200 and 55 MA (purple and blue) are flat. So no help here.
The double top and the divergence of MACD should have set us up with a bearish trade untill number 2.
When price retraces to number 3 we should have been stopped out by then but hopefully with profit.
Number 3 provides us with red candles and a 5/8 cross to the downside. Another aspect that we see is that price moves below the cloud or resistance.
Number 4 and 6 shows a small inverses head and shoulders pattern or a tripple bottom depending on how you want to see it.
Price then passes over the cloud and MACD turns bullish. So only long here please.
Price passes over the 200 and 55 MA (very bullish) and retraces to number 8.
Support of the cloud holds and we have another long 5/8 cross. What to do now?
I measured how much the marked already moved and how much space it still had to move.
So if it only moved 60 pips and the daily range is 120 pips there is still space and time in the trading session to take another trade.
And yes price continues to move up right to number 9. After 6 pm UK time I avoid taking trades.
Now your challenge and mine will contine to understand this price action while price is unfolding in real time.
I wish you the Best of PIPS…