As you can see in the chart, the TECHNICAL ASPECT of the EURUSD is impeccable for going SHORT ALWAYS while the trend is still bearish (Bear).
Many times we go crazy looking for opportunities in the market and WE DO NOT FOCUS on the fact that in order to TRADE EASY AND SUCCESSFUL, the most important thing is that the technical situation of the chart is the EASIEST to analyze.
The EURUSD pair is an example of ease currently. Clearly at a glance, everyone would know by looking at the chart that its trend is bearish with a clear and stable negative slope.
How should we operate the EURUSD?
1) We will only look for SHORTS (Bear).
2) We will wait for a reversal in the fall (blue candles) and when the price turns red again (red candles), we will enter short. Each vertical blue line on the chart shows a short entry that we would have made, that is, 5 entries since November 5.
3) Take profit depends on each person's strategy because it could be by %, by number of pips...
Currently the EURUSD's strength in H4 is bullish (Bull) that's why the candles are blue. What we have to do is WAIT for the strength to turn bearish (Bear) and therefore the candles to turn red again.
------------------------------------------------
Strategy to follow:
ENTRY: We will open 2 short positions if the H4 candle closes below 1.02463 which will be when the candles turn red again.
POSITION 1 (TP1): We close the first position in the 1.01820 area (-60 pips)
--> Stop Loss at 1.03550 (+108 pips).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (+108 pips) (coinciding with 1.03550 of position 1).
---We modify the dynamic Stop Loss to (+10 pips) when the price reaches TP1 (1.01820).
-------------------------------------------
SET UP EXPLANATIONS
*** How do we know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: If the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% in the rises, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very solid and stable price trends can be taken advantage of, maximizing profits.
Many times we go crazy looking for opportunities in the market and WE DO NOT FOCUS on the fact that in order to TRADE EASY AND SUCCESSFUL, the most important thing is that the technical situation of the chart is the EASIEST to analyze.
The EURUSD pair is an example of ease currently. Clearly at a glance, everyone would know by looking at the chart that its trend is bearish with a clear and stable negative slope.
How should we operate the EURUSD?
1) We will only look for SHORTS (Bear).
2) We will wait for a reversal in the fall (blue candles) and when the price turns red again (red candles), we will enter short. Each vertical blue line on the chart shows a short entry that we would have made, that is, 5 entries since November 5.
3) Take profit depends on each person's strategy because it could be by %, by number of pips...
Currently the EURUSD's strength in H4 is bullish (Bull) that's why the candles are blue. What we have to do is WAIT for the strength to turn bearish (Bear) and therefore the candles to turn red again.
------------------------------------------------
Strategy to follow:
ENTRY: We will open 2 short positions if the H4 candle closes below 1.02463 which will be when the candles turn red again.
POSITION 1 (TP1): We close the first position in the 1.01820 area (-60 pips)
--> Stop Loss at 1.03550 (+108 pips).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (+108 pips) (coinciding with 1.03550 of position 1).
---We modify the dynamic Stop Loss to (+10 pips) when the price reaches TP1 (1.01820).
-------------------------------------------
SET UP EXPLANATIONS
*** How do we know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: If the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% in the rises, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very solid and stable price trends can be taken advantage of, maximizing profits.
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.
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.