Quote of the day: “Believe you can and you’re halfway there.” – Theodore Roosevelt
EURUSD – 1.3680 @07:53 GMT
Good morning. Upside is back in focus as the euro rallied on Friday, reversing at 1.3550. My plan to sell at 1.3560 on the potential breakdown turned bad but the secondary plan – to switch direction on rally, buying around 1.3625, was ok – recovering the previous loss. Now that the trendline coming from 1.3860 through 1.3740 was broken around 1.3620 on Friday – I am looking for fresh buying opportunities – and the daily charts are confirming the bullish bias. Near term resistance stands at 1.3750 and potential break above negates the lower highs formation on the daily charts. The market will probably be quiet today due to the US President’s Day holiday.
Trading strategy: looking to buy on pullback to 1.3620, stop at 1.3560 (0.5% risk), 1st objective at 1.3680, 2nd objective at 1.3800
Support: 1.3620, 1.3550/80, 1.3500, 1.3430/50, 1.3360 and 1.3300
Resistance: 1.3700, 1.3730/50, 1.3800 and 1.3860
Market sentiment: long term – mixed, medium term – bullish, short term – bullish, intraday – bullish
- EURUSD 4hrs chart 2-21-2011
- EURUSD daily chart 2-21-2011
have a great day and good luck trading
Just love the way you present your plan. Keep up the good work and may the pips be with you. One question, how do you use the wave on your chart?
Thanks
Are you referring to the moving averages?
Yes and Oops thanks for the reply :)
those are 3 Moving Averages (period 15): one applied to Price Open, one to Price High and one to Price Low.
I use them to provide a support/resistance zone. The higher and lower ones (price low and high) are more important than the middle one. What I look at usually is breakouts above higher MA or breakdowns below the lower MA. Sometimes I place my stops below the lower MA on uptrends, above the higher MA on downtrends respectively.
They are part of my trading strategies but I don’t have any strict rules on usage.
Now that I shared the holy grail, I’m asking for 10% of your first million $. :p
Well King Arthur is still look for the Holy grail, now I know who has it. It must be worth alot of pips nowdays:) So now I need to put this into action and allow the Holy grail to fill with pips so that I can share with you and the rest of the 95% looking for the Holy grail.
Hey Liviu, thanks for the reply and yes I know that all is not that easy in life. I have been having a hard time trying to take and keep some pips out of this Trillion $ game. So I keep trying but play small with a 2% right now and there is some improvement, which only works by staying with the plan and not jumping from one plan to another. I'm still need more guidence from people like you.
Thank you again, wonderful day?
Ok here I go again. Trying to shine the Holy grail.
Do you use ema's, and what time frames are best. I know you like the 4hour charts. So will that be Daily, 4hour and entry on 1hour. I see this does give you small stops which is good.
Thanks just trying to pick the brain of those who know how to stay in this game and come out profitable.
I use larger time frames starting with 4hrs, mainly daily. I rarely look at any chart lower than 4hrs; sometimes I check the hourly but I do that mostly when publishing an article here because I know most people use the intra-day charts so I want to stay on topic.
The daily charts are best in my opinion. Less noise.
People are usually scared if they hear about trading on 4hrs, daily or weekly charts because it requires larger stop loss sizes (in pips).
But what some (I don't want to say "most") beginners don't understand is that a larger stop loss (in pips size) doesn't necessary mean a possible larger loss (capital). You can lose the same amount of money using either a 10 pips stop loss or a 100 pips stop loss depending on how you adjust the lot size.
Maybe intra-day scalping works for some traders out there but definitely doesn't work for most and it doesn't work for me. It worked some years ago (for me) when the market was calmer, not necessarily more predictable but less violent.
I guess it's best to try both shorter and larger time frames and see which one is best for you. If you want adrenaline rush – go for the 5minutes charts and watch the tick charts after entering a trade
:D
Cheers
Liviu, thanks for the time spent in replying, not all do this.
I will take your advice.
Thanks and will chat to you again sometime.
No problem at all.
Come back and post your comments whenever you want.
I am no guru nor a Soros relative but if I can help with something from my experience, I'll do it