EURUSD (10-Jan-2021)
Monthly chart shows that the overall rough idea of support and resistance level.
Weekly chart shows that the price has entered into resistance zone.
It explained why the price has started to consolidate.
One thing I learned from the trade is to be careful of the position that we have when the price action has entered into the resistance zone, be it a downtrend or uptrend.
Take note also when planning to add in more position.
Daily chart
The price action has been consolidating since it entered into the weekly resistance zone.
4H Chart
4H chart is showing that the uptrend is slowing down already.
The traction to move up has slowed down.
Overall trend is still uptrend, but need to wait for the price action to form lower low.
I learnt an important lesson from trading this for the past one month.
The lesson is to stop adding position when the price action has entered into resistance zone.
Learn to move the stop loss to 2% of the capital plus profit, when there is profit shown in the trades.
I learned this the hard way as all my profit has been wiped off when I was still adding my position after the price is consolidating in the resistance zone.
Also, another most important lesson is to close all the position when the price action does not move as per what we predict.
This is to breakeven the trades and preserve the capital that we have and keep it for the next trade.
Note
Looks like the price action is moving downwards after hitting the daily/weekly resistance zone.
Need to wait for the best setup.
Overall still uptrend.
Wait for the consolidation bar after the price action drops.
Note
4H chart also is showing the formation of lower high and lower high; lower low of lower low.
Note
Daily chart is showing downwards pressure is more than upwards pressure.
Let's wait and see when the support formed.
Note
Daily chart above is showing that the resistance is strong and the price action is moving down at the moment.
Note
Daily ChartLower low is formed. Let's wait.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.