Daily Chart – EUR/USD
LONG or SHORT: Short
Aggressive Approach, very short term trade - this is merely range trading
Entry price - 1.338-1.34
SL - 1.342 for about 20-40 pips
Target - 1.334 for about 40-60 pips
for more aggressive approach and target take only half profit at this target, take rest of profit at around 1.28-1.3
R:R - depends on your entry and target, minimum 1:1
or
Conservative Approach also a long term trade - this is trend/counter-trend following
Entry Price - 1.3235 this is breakout of this range also if you look at your own 4h chart, you can easily identify the double top formation
SL - 1.333 for 95 pips
Target - 1.3045 for 190 pips
R:R - 2 - 1
Trade rationale: Trend is up, however it has just touched a major resistance area. Also, 3 indicators are all showing bearish divergence with the price showing a new high but a lower high on three indicators! Stoch is overbought, rsi just reached 70 turning down bounced up when similar top was created but didn’t touch the 70 and now falling again. I also added the volume indicator for the first time on the bottom, volume suddenly went insanely high on the 17th but it failed to create a higher top, I also take this is a signal that a reverse is going to happen.
Currently, EUR/USD is consolidating into what looks like a trading range. With my indicators all show a bearish divergence, this is a perfect shorting opportunity.
Also, with both methods, you can reduce half of your positions once you’ve reached half of your target then leave the other half open with stop loss at break-even at least, idea is once a trade seems very favorable to you, prevent your position from going against you. If you like a more aggressive stop loss approach, don’t take profit at mid point, instead just set your stop loss to break-even then either you get hit break-even or you take the full profit.
Make sure you follow risk management to not risk more than 2% per trade!
Also no trade is 100% correct, but with proper setup + risk/reward + trade management, odds will be in your favor in the long run!
Good Luck trading!