This is the 4 hour chart
If we look at this 4h chart we can see the market is currently consolidating
And it’s forming what looks like to be a falling wedge of some kind
Through Babypips school, I’m sure we’ve learned that falling wedge tends to signal breakout to continue towards the upside but of course not always, just likely
I already showed the daily and weekly chart for the long term strategy and big view
Looking at this 4hour chart helps us pinpoint a more precise entry and entry
When we are trading, we can often trade breakouts or within a trading range of both support and resistance
In the weekly and daily I leaned towards the bullish side, so i’ll only look for entries in the bullish side
Also if breaks out towards the bottom side…it’s hard to sell given strong support coming up very soon as discussed previously
Although it’s also possible to sell the breakout with a tight stop, it’s a matter of taste and preference.
The support I mentioned could never hold just shoot through like nothing especially some news event occurred during this time. However, I prefer to choose the side that offers the best odds with the most room to go in my favor than against
I prefer trading with the trend than against, when you trade with the trend, you can make money while in your sleep, when you trade against a trend, it’s profitable as well but you need a lot more management, you need to be more precise in stop loss and targets and constantly monitor the trade since it could turn against you anytime.
Finally, if the whole trend reverses, then you grabbed the whole chunk of profit/pips since you entered exactly at the top/bottom of a trend reversal
Of course, both trend trading and counter trading has its own merits
It’s a matter of personal style, preference and trading system/method
Looking at the 4h chart we can see there’s clearly support coming up soon
Here’s a trade that I would look at when trading the support line
Entry - at around .8335 - .835
Stop - at .83
TP - short term target around .837-.84,
mid term target = .845
long term = .875
super long term = hold on forever!
Also once it breaks out the resistance on the 4h, I’ll be adding position to this kind of trade
Then once it shoots past .85 i’ll be adding another position as well as dictated by earlier strategy
Of course adding positions toward this trade is just personal preference…
I prefer to add to my winning trades.
And if you don’t believe the support will hold, of course you can ignore my entry and just only buy the breakouts
Breakouts are a lot safer to trade than trading support line alone because support line doesn’t always hold
However, trading support line leads to bigger profits with smaller stop loss.
Trading breakouts tends to be more favorable but with bigger stop loss and less profits.
By looking at weekly, daily, and the 4h charts, we can locate the direction of the trade, then strategically identify support/resistance
Then finally pinpoint the exact entry/exit
Sorry, if i just took over your whole post/topic
These are after all just my own opinion and idea that I’m sharing with you
Not trying to say I’m right or you’re wrong or anything like that
Just trying to exchange ideas/opinions
And perhaps let us all learn something from trading
Since trading is a long and slow learn process, each trade is worth a lesson of its own