Hi, I’m new here and I just wanted to test my hypothesis if any old bird could give me some advice.
There’s a breakout that happened on the 4H chart, but it seems to be testing the 0.382 levels.
Questions -
The Daily chart indicates an overall upward trend, but with several bearish breakouts along the way. Movements, IMO, depend on fundamental economic news items affecting either or both currencies, which sees immediate market reaction.
However, the EUR seems to be more consistent when breakouts occur. In which case you could put in two pending orders - one buying if the upward trend continues - follow the 15M chart- and the other selling at a convenient point below the current price level - also follow the 15m chart.
Best of luck.
Seems like your strategy is based on broken trendline right at the 38% fibs.
What you need to do is go back in your charts and find at least the last 50 times this happened. Make note of the risk and reward each time. Decide where you would place your stops and take profit. Make note of the profit or loss of each trade.
Then only you will be able to decide if this strategy is profitable for you, and if trading 38% fibs breakouts and broken trendlines on 4H EURUSD is a good business.
EURUSD trading is favorite to many traders because of its low volatility. Traders can easily hold a trade for a long time so it’s risk free for them.
EURUSD is my favorite currency pair because it offers narrow trading spread and comparatively less volatile than other currency pairs.
