EURUSD Looking Good on The Weekly
Updated
First off, hello everyone! This is the first of many posts I will be doing. SO the way I trade is a simple price action strategy I developed, I will be attaching myFXbook soon so everyone can see my track record and trades I take as well.
BUT lets get into the trade...
Recently the EURUSD broke out of a sideways market on the weekly charts. It did retrace back to the event area which is healthy, before getting rejected at a heavy area of supply at 1.23350. It came back down to the retrace/breakout area and managed to put in 2 separate buy signals. Going through my checklist, these buy signals occurred at:
- Key area of support
- Event area (breakout)
- Current long-term trend is still up for the time being (daily), although the weekly is still down
- From the lowest low to the highest high, I look for around a 50% retrace which it has
- An area where a risk of at least 2 to 1 is attainable
First target would would be 1.20332, I will be looking for a reversal signal on a lower time frame daily or 4 hour to exit. If that level is broken my 2nd target is 1.23300.
Stop is at 1.14979 and as I always do I do not risk more than 2% of portfolio per trade. In this instance I have lowered it to 1% because I typically do not trade off the weekly given the larger stops, which make it more difficult to create a 2 to 1, ideally a 3 to 1 R/R.
BUT lets get into the trade...
Recently the EURUSD broke out of a sideways market on the weekly charts. It did retrace back to the event area which is healthy, before getting rejected at a heavy area of supply at 1.23350. It came back down to the retrace/breakout area and managed to put in 2 separate buy signals. Going through my checklist, these buy signals occurred at:
- Key area of support
- Event area (breakout)
- Current long-term trend is still up for the time being (daily), although the weekly is still down
- From the lowest low to the highest high, I look for around a 50% retrace which it has
- An area where a risk of at least 2 to 1 is attainable
First target would would be 1.20332, I will be looking for a reversal signal on a lower time frame daily or 4 hour to exit. If that level is broken my 2nd target is 1.23300.
Stop is at 1.14979 and as I always do I do not risk more than 2% of portfolio per trade. In this instance I have lowered it to 1% because I typically do not trade off the weekly given the larger stops, which make it more difficult to create a 2 to 1, ideally a 3 to 1 R/R.
Note
Since I forgot to mention my indicators above, I use both RSI and Full Stoch. These help me determine inflection points that support what the price action is telling me.As I still have the basic trading view for the time being, my moving averages from my actual platform are not present. I utilize 4 moving averages (exponential), 11, 28, 50, and 200 day.
Note
There are 2 consecutive inside bars on the daily, with the last bar having a bullish close. I have placed a buy stop at 1.16768 with a stop around 1.16100 area, approx a 3 to 1 R/R.If my buy stop is triggered I will have a full position in this trade, 1% risk off the weekly and 1% off the daily. Target profit remains the same.
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.