Tuesday January 27 Eur/USD Trade Setup

Monday’s Results:

The price went to the trend wall on the 4 hr chart. It initially bounced of off the trend wall and then started to climb and it went right through it. So after it went through the trend line I went to a 1 hr chart and waited for the 1 hr candle to close above the trend wall. I was a little hesitant in making an order to the upside so I risked less than normal and only bought one lot.

However it went straight to the target of +100 pips.

Tuesday’s Trade Setup
The trend on Monday was up all day. However on the daily chart the price has hit a support level of 1.2763  so we will see if the trend continues to rise. I will be watching the secondary trend line on the chart. If the price breaks through the second trend line than I will buy.  After that I will be watching the Fibonacci level I set up if it goes through the 100 level. That will be another entry point.

On the downside if the price bounces off of the second trend line to the downside than I will be looking to enter as soon as the rsi goes below the 50 level.

Setup:

When the price does one of the things I spoke of above I will either buy or sell.
Either way I will enter with 3 lots.

1st lot limit and stop at 55 pips
2nd lot limit at 100 pips and stop at 75 pips
3rd lot no limit with a 100 pip stop and a trailing stop of 55 pips

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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