EURUSD, Trading the Trend
Looking at the Euro’s value in US dollars (EURUSD) to find the general trend and potential entries and exits.
We can see historically, due to the momentum of the trend, that using a trend indicator like our Directional Bias Indicator has led to having a rather successful long./ short bias.
Above the yellow line, the bar color is green, and the bias is long. Below, bar color is red, and bias is short.
We always want to trade the direction of the trend, but in general, we will want to enter and exit positions along the trend as well.
To find entries and exits, we can use our Triggers indicator.
In an uptrend, we go long and take profits at L tp (purple arrow), and in a downtrend, we got short and take profits on S tp (blue arrow).
Likewise, if we want to find re-entry, we can look for the purple x marked L e for a long entry, and a blue x marked S e for a short entry.
In other words, we want to first and foremost listen to the long signals from Triggers in an uptrend and the short signals from Triggers in a downtrend.
Right now we have a long bias according to Directional Bias and a long entry according to Triggers. A cross below the yellow line means a short bias from Directional Bias and that means the long is invalidated. Otherwise, the bias from Triggers and Directional Bias is currently bullish on the US dollar against the Euro at the moment... although looking at how close we are to the previous range as defined by Directional Bias, that could change quickly.
We can see historically, due to the momentum of the trend, that using a trend indicator like our Directional Bias Indicator has led to having a rather successful long./ short bias.
Above the yellow line, the bar color is green, and the bias is long. Below, bar color is red, and bias is short.
We always want to trade the direction of the trend, but in general, we will want to enter and exit positions along the trend as well.
To find entries and exits, we can use our Triggers indicator.
In an uptrend, we go long and take profits at L tp (purple arrow), and in a downtrend, we got short and take profits on S tp (blue arrow).
Likewise, if we want to find re-entry, we can look for the purple x marked L e for a long entry, and a blue x marked S e for a short entry.
In other words, we want to first and foremost listen to the long signals from Triggers in an uptrend and the short signals from Triggers in a downtrend.
Right now we have a long bias according to Directional Bias and a long entry according to Triggers. A cross below the yellow line means a short bias from Directional Bias and that means the long is invalidated. Otherwise, the bias from Triggers and Directional Bias is currently bullish on the US dollar against the Euro at the moment... although looking at how close we are to the previous range as defined by Directional Bias, that could change quickly.
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