PAIR EUR/USD
Time Frame Daily
Direction Long
Entry Point 1.2500
Stop Loss 1.2429
Pip Stop Loss 71
Profit Target/s 1.2708
Pip Profit Target 208
Reward-to-risk Ratio 1:2.93
Risk percentage 2.55%
Indicators used MACD, Fibonacci
Trade Rationale
The Idea is based on techincals. You can observe that the 2 circles on the graph, the red one and the blue one, are two growing black candles. My observations say that two black growing candles give an uptrend.
Confirmation is given by MACD. If you observe the macd you can see that there’s a previous divergence, is green and is increasing its level without eccesses. It has not cross yet so I can expect that it’ll continue at least for a while.
The target is gived by Fibonacci at 1.61 level traced from the minimum of the two circled green candles (that are increasing minimum).
I excpect a small rentracement that give me the entrance level at 1.2500.
nice analysis…friend…but if u mention what is ur observation clearly…then it wold be very nice…its just a requst and advice…thank u…and all the best…
Hi fxsrikanth,
If you observe a trend you can see that after the first break out frequently you find two growing black candles like the two I’ve marked in my post. Is an empiric observation not science but sometime it works.
a 50 sma on a daily is very effective, it would have plotted your entry long and the short be fore that