Follow up from previous EURUSD chart.
I initiated long positions today at 1.304
The stop for the current long position is fairly wide. Volatility is high at present and it is imperative for us to give enough time to the price to fluctuate before trend extension can happen. If you look at today’s market profile chart, then it is pretty evident that strong positional traders have entered. Such wide profiles indicate switch in OTF traders sentiment. The value area however, is still close to 1.276 – 1.283. It is possible, that price may move towards this one more time. If it does, it will be a good test for responsive buyers and we will certainly get insights into how strong the move can be going ahead. In case price does not gravitate towards this value area, it won’t matter much as long positions have already been initiated. Since it is difficult to map which situation will play out, it is better to keep a wide stop loss and be long.
Till EURUSD remains above 1.274- 2.276 on closing basis, I will continue to remain long. I have initiated 5% – 10% long positions and will add as market moves in favor. In case price dips towards the value area, I will average my buying price.