The price action appears to have found a range, and I'm hoping to capitalize on it by going short.
Not much to say here except that I am expecting the support / resistance zones currently in play to hold. Also, notice the stochastic oscillator is overbought. Most of the time this has been an accurate predictor of a downside move.
I'm trading this with a market order since the range isn't that big, I'm not that highly leveraged, and EURUSD can whipsaw around quite a bit (especially at the London open), making a limit order less effective.
The main risk here is that the price will go higher before falling lower, stopping me out. In such an event, I might consider setting up a sell limit order to try and catch the price next time it falls (assuming that's possible). Also, if the price does go higher, it might create a little more "clearance room" so I can place a sell limit with enough room to be safe from errant price action, but still be able to make some profit from the range.
Not much to say here except that I am expecting the support / resistance zones currently in play to hold. Also, notice the stochastic oscillator is overbought. Most of the time this has been an accurate predictor of a downside move.
I'm trading this with a market order since the range isn't that big, I'm not that highly leveraged, and EURUSD can whipsaw around quite a bit (especially at the London open), making a limit order less effective.
The main risk here is that the price will go higher before falling lower, stopping me out. In such an event, I might consider setting up a sell limit order to try and catch the price next time it falls (assuming that's possible). Also, if the price does go higher, it might create a little more "clearance room" so I can place a sell limit with enough room to be safe from errant price action, but still be able to make some profit from the range.
Trade closed: stop reached
Got stopped out. Re-entered with a new limit order to catch any downside after the recent rise, but still give the price a chance to go higher. See this image:
Note
New order was not triggered. Stepping back to see where the dust settles. Back to the charts.
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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.