EURAUD Daily
Long or Short: Long
Entry Point: 1.3280
Stop Loss: 1.3180
Profit Target/s: 1.3880
Reward-to-risk Ratio: 6:1
Risk percentage: 1%
Indicators used: Rising trend line
Trade Rationale: There is a rising trend line on the pair. I am hoping support will hold. Also, Europe just released its plans to save Greece. I am hoping that this will make the euro trade higher on the charts next week.
Trade Adjustments: move my stop every 100 pips
Nice idea!
maybe we should wait for a reversal candle before entering. What are your thoughts?
Taking a second look at the chart I’m not to sure anymore about the trend line you drew. As you can see the second peak is a lower high instead of a higher high which makes me skeptical.
I do however think that the pair will rally up a bit in the near future. The following chart is from the 4h time frame. You can see that there is a down trend with three increasingly powerful waves, this I think is a good sign that there will be a 4th downward wave. However the most recent candle is at a very strong support which dates back to 12 September and has been tested many times. The most recent test shows a pair of tweezers, so I think there is a good chance this pair will rally up towards the trend line and then go back down.
If going long on this trade I’d watch out for the resistances starting at ~1.32660 and ~1.34526.
I think this ones a winner…but not yet. I’ve been watching this one too. I agree with the above poster who said to wait for the reversal. Move this trade idea to next week or the week after and it will be a no-brainer!
Looks good but I’m not an experienced trader so I’ll keep my thought to myself.
Strongly agree with Kluebirby. Should wait for a while to make a precise, hence better entry. If everything goes according to the plan, this is going to be one interesting trade.
