EURUSD: Sell stop trade on confirmationGood morning to all traders and investors,
after several weeks spent reviewing and updating my LuBot indicator for intuitive graphic analysis, here I am reporting a new analysis on a possible short trade on EurUsd.
As you can see from the graph above I have highlighted some main parts of this trade idea, starting however from a broader vision i.e. that of the Weekly graph that I share below
From the weekly chart we see that after the last short signal, a first bearish swing is created, thus causing the negative structure to return. After a slight retracement in recent weeks, a doji bar is created which acts as a swing maximum and the following week the second bearish swing is created in which we still find ourselves today.
All LuBot indications are negative so we are eligible to look for a short.
At this point I go down to the lower timeframes (Daily,12H,6H or 4H) which are the operational timeframes I use as I never go below 4H.
Generally speaking, all timeframes lead to the same reasoning, but the one where the vision is clearest in this case is the 6H which I bring you as the main image.
Intuitively LuBot already gives me a clear vision of the trend and what to do as we clearly see that the price has remained below the trendCloud which acted as dynamic resistance, we have a Short signal which has not made a big movement and we could expect a subsequent extension, the candles are still bearish but are currently in a retracement phase.
Confirmation of an effective return to the negative short structure would come from the break of the 1.0479 level that LuBot shows with the red dots, in which I insert a sell stop order on strength.
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⚠️ Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always do your research before making investment decisions.
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