Hi all,
since this is my first time posting in this forum (after following Babypips.com for many years, I have finally created an account to join the discussion:)), so I apologize beforehand if I have posted in the wrong section. I wouldn’t say I’m an expert yet so I need help with this trade EUR/AUD trade idea on a daily chart.
Here’s an image of the chart I’m currently looking at:
This one is without the indicators:
The indicators I’m using are 15 EMA and Heiken Ashi (smoothed)
Here’s what I see:
As shown in between the two trend lines, there seems to be a few support and resistance levels on the chart
based on this. I am thinking the EUR/AUD pair may remain bullish throughout the week. My reason is because the few supports levels have been tested but have never really gone below the initial dip and the resistance level is slowly climbing after every dip as well. Also, I can support my idea by jumping over to the weekly charts where it shows that the moving average is pointing upwards, along with one bullish Heiken Ashi stick closing above the other. This means that it is very likely the next week will be mostly dominated by bullish actions.
However, if the current movement fails to continue above the bottom trend line and goes below it, then a bearish movement may take place.
Here’s what I’m thinking of doing:
When a long bullish candle forms right after the bearish candle hits the trendline, I will open a buying position at around 1.460 to 1.470 putting a stop loss of about 100 pips and a take profit of about 100 pips.
On the other hand, if if fails to move above the bottom trend line, I will go short starting from the next candle that forms below. Since i have a disposition towards the bullish movement, I might just place a stop loss of about 50 pips and take profit of about 50 pips.
P.S. Do let me know where or what I can do to improve this trade idea. I don’t know if I am right about this, so I appreciate any opinions or criticisms given. Thank you:)