Eur/Usd up, down, up, down like a see saw. For those of you that remember that wonderful playground toy. You are always moving but you never get anywhere. I have good news though there is a trade setup in all of this.
That is how the Eur/Usd has been trading since the beginning of the month of November. Today the price moved lower in the European session and then began to move back up in the New York trading session. The strong resistance level is 1.5000 and the strong support level is 1.4800. These two levels have been tested several times each.
In the near term there is a wedge forming on the one hour chart and that wedge could be and entry signal upon break out.
1Hr chart *note Click the chart to learn about a charting system
The price has been consolidating to reach a point where we could see a breakout in the upcoming Tokyo or European sessions.
When the price breaks the trend line on a one hour chart move to a 15 minute chart and when a 15 minute chart closes outside of the wedge enter the trade in the direction of the breakout.
Place your stops above the high or low of the one hour candle in the direction of the trade. Move your stop to break even when you hit 15 pips of profit. I also open two lots and take early profits with the first lot and let the second lot run for larger gains.
Make sure that the total of both lots open do not equal more than 2% of total account value the reason the trade size is so small is because this is necessary in order to practice safe money management techniques and to preserve capital.
Thanks for reading and let me know how this trade setup works for you. I will come back tomorrow and review this trade, come back then to give me your trade updates as well
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