[TW] 2012-08-13 Long EUR/USD by Bijoymj

[Bijoymj]

[TW] 2012-08-13 Long EUR/USD by Bijoymj

Chart : 4 Hour
Long or Short: :Long



Entry Point: 1.2250 (At Channel bottom)
Stop Loss: 1.2150 (At previous low)
Profit Target/s: 1.2500 (At Channel Top)
Reward-to-risk Ratio: 2.5 : 1
Risk percentage: 2 %
Indicators : Stochastic, Channels

Trade Rational: Seeing the formation of an upward equidistant channel in the 4 hour chart and price is reaching it's bottom. Also Stochastic is oversold and a bullish divergence is in formation.

Trade adjustments. Presently Nil. If any adjustments are made, that will be updated through this thread.

[fedegmail]

Ok you're right but I would add that there is also a bullish engulfing so I will buy immediately EUR/USD without waiting for 1.2250 level.
Good luck, I'm with you

[Bijoymj]

Right.........

Buying at market also can work well by keeping SL and TP as is.

[jamessheppard]

Its a nice channel but reason I am not taking the trade is the strong reistence at around 1.2322 and also the 200SMA which has acted as strong resistence in the past. Also we are in a downtrend of course. Good luck though i hope i am wrong for you!

[FXSniPer1]

Almost similar to my idea. 1.2500 target seems a bit overstretched. You realize we have a cap before that number?

[Capnskahoshi]

I like this idea, I'm going to be doing the same on it. Also, I like the idea about the downtrend, definitely something to watch for, but I think with the downtrend, depending on how far back you go, it looks like there's some steam left to the upstroke on the trend. You have to back and draw the line from last year about this time, but something to think about.

[Bijoymj]

Definitely. Some adjustments are required on process, It is necessary to get out the resistance area @ 1.2400

[Bijoymj]

I feel, resistance @ 1.2400 is stronger than that @ 1.2322

[FXSniPer1]

I am personally long this pair at market 1.2285 with a stop at 1.2239 and targeting 1.2405 with an extension into 1.2450 in view. will be short around 1.2460 if it could make it there.
Looking forward to a great start to the week and wishing you best of the week!!

[Kiwi Pip Squeak]

Not a great lover of this trade. If you check out the daily price, the pair have been in decline since February and look as if it's dropping of the top of the descending channel. I'm going short with a target of 1.1950