Very new to trading here, but here is my very basic analysis of the EURUSD . If anyone can offer any feedback/criticisms on my analysis I would be most grateful for the input!
Summary of Analysis:
-On the daily chart price is above the MA200 and currently appears to be moving in a channel.
-Price looks to be approaching an area of support which it has tested recently on the 30th June and 1st July.
-I am anticipating that the price will approach and test the support area and I am hopeful that it will then be propelled upwards.
Things I am looking for:
-Keeping an eye on this chart before making a move. I am looking for some signs before entering into this position.
Looking for the price to move down and test the support area.
Once the price tests the support area , I will be looking for reversal signals in the charts to enter my position. Mainly, I will be keeping an eye out for one of 3 entry signals:
i) A doji candle in or around the support area and my entry buy stop will be positioned for when the price breaks just above the doji candle; or
ii) A pin bar candle in or around the support area and my entry buy stop will be position for when the price breaks just above the smaller upper wick of the pin bar ; or
[iii ] An engulfing pattern and my entry will be taken at market if this pattern materialises.
Would be most grateful for any thoughts, ideas and feeback on my analysis and trade.
Many Thanks.
Anything can happen, but looks like you will do exactly what they expect you to do. Which is go long and then they push the price down hit your stop and then go up. If i buy i will look to buy around 1.1150.
The most traded currency pairs in the world are called the ‘major pairs’ and EURUSD leads this group, being the most traded in the world. This pair represents the two largest economies in the world and has faced its greatest volatility since the creation of the euro in 1999.
3 X’s - These are very minor S/R levels and are cluttering the chart. Try to think about areas where the market stopped and reversed on a dime (multiple times), or, has broken out. Get rid of these to de-clutter.
2 Green Lines - These are my primary S/R zones. The lower line is a clear breakout level. The upper line is where the market stopped on a dime, reversed, and hasn’t been back.
1 Red Line w/ “50%” MarkingIMPORTANT - This is what is typically referred to as “no mans land” (research WW1 warfare as to why). You’re literally dead center between two key market inflection points. Trying to play the middle is where you are more likely to get whipped around. The higher probability trades occur in the upper channels. (or, if you’re skilled at breakout trading take that short setup with a tight stop)
2 Red Lines Forming The Triangle (with blue markings inside) - This is a typical bearish breakout structure- research why on the internet (hint: buyers unable to make new highs, but trying to defend lower bound). When (and if) market retests the lows of the triangle (compression continuing to mount) long stops will get run on and they’ll all puke out. This is why you see explosive breakouts on these patterns - everyone rushes to the door at the same time and the opposite side of the market disappears.
Rather than trying to predict what the market is going to do, let it tell you what it’s going to do- I personally think this is the best way to trade, but, everyone is different.
@FOREXunlimited Thank you so much for your comprehensive feedback. Definitely a lot of things I didnt consider in my initial analysis but has given me a fresh perspective! Many thanks!
You’re welcome! Just remember that trading is a game of probabilities. Things are not so black-and-white and often times you’re just doing some type of trade off analysis in your head, in some grey zone. Some say it is an art- and, I agree 70% of the time.
