Pre market opening review of EUR/USD - Can you critique my thoughts!

Beginner Questions
1

Hi everyone. I am taking a look for the first time at EUR/USD. This is a Pre market opening review of EUR/USD - Can you critique my thoughts!

EUR/USD 7th July 2023 05:30 BST

Bear or Bull

D1 check : Bearish

H4 check : Bearish

H1 check : Continuation pattern

Moving Average(AMA 55)

D1 check : Trading below

H4 check : Trading below

H1 check : Trading below

Relative Strength Index(RSI 55)

D1 check : 47

H4 check: 44

H1 check: 47

H1(RSI 14) check : 37

Wedge pattern(D1)
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Falling wedge suggests Bullish reversal. Is it ever possible for a falling wedge to be a bearish continuation pattern? It seems not?

Bearish rectangle (H4)
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Bearish rectangle suggests price will drop again. May fall by around height of the rectangle.

Support & Resistance(D1)
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Support band being tested – will likely fall to the lower support band

Fibonacci Retracement
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Not sure what to make of this – how do you use Fibonacci on a bearish trend – I don’t see the bounce hitting 61.8 or 50 levels?

Candlestick patterns

Hanging man(H4)
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Suggests bearish trend

Spinning top(D1)
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Suggests continuation trend

Not sure what to make of the H1 candlesticks?
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Conclusion:

Bearish
pair will fall consider a fall across the day rather than within short term.
How far will it fall – used support lines to figure out where it may fall to. What other signals are there for this?

Take profit: 1.06732(102)
Stop loss: 1.07020(186)
Sell price: 1.06833

I wanted to follow RRR 1:3 but felt it didn’t get me enough breathing room across a longer trade. If I wanted say 200 pips buffer would I just upscale my take profit to around 306 pips to make this a ‘better’ trade?

SO! Long post, I likely got things wrong all over the place. I would really appreciate any incorrect thoughts, missed signals, incorrectly read signals, opinions that would help me to include in my future checklist.

1 Like
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Congratulations. Your trade should already hit TP.

I would have traded it differently. With a much much smaller SL at 1.0689. But if it works for you this way. Also i think it was 10.2 pips TP and 18.6 pips SL, not 102 and 186?

1 Like
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Hi @Worker_Bee - thank you for your continued following of my journey and yes - a profit of £0.85!

Ah yes, it is 10.2 and 18.6 pips, for some reason MT4 says 102 and 186?

That smaller SL at 1.0689 would only give you a buffer of 6 pips? Doesn’t seem enough when I was looking to be ‘right’ across the day rather than hour. I don’t thikn this would have given me enough breathing room for the trade to reach the TP level? Thoughts?

Do you agree with my ‘conclusions’ on the charts I included on the original post, I want to ensure I am reading them ‘right’?

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I have a different trading style. The 5m chart gave you an opportunity to place your SL above the little pullback. You dont have to place it there, but it would have given you a better RRR. Keep on your good work.

I do.