EUR/USD
Price gave us our dip and a bullish cs formation
yesterday afternoon, and rallied just more than 100 pips. Stops were then
placed at zero according to our rules. We got stopped out with no loss when
price fell after the FOMC announcement.
We are still in the downtrend on the 1H chart, price has
taken out yesterday’s lows but has just now given us a bullish cs formation at
the B low again. We will take this trade setup as it is according to our
strategy. Place stop below the cs formation, limits are set at 3780. This will
also be a ST since we had a failure at the A high and now we are at the BF, but
notice that the limit is not at the 3920, but the more recent high of last
night.
If price drops and stops us out then we are looking for
it to take out the B low and continue the downtrend. We then have to wait for a
new B to form, then draw fibs and start all over again.
SHORT: WILL
ONLY BE GOING SHORT IF:
We need price higher up around the 3693/3738 or even last
night’s high and then a bearish cs formation. Else if we rally and take out those levels
then 3920 will be the next level to watch for short entries.
If we don’t get the cs formations we are looking for then we don’t trade.
LONG: WILL ONLY
BE GOING LONG TODAY IF:
Price just gave us a bullish cs formation which qualifies for a BF long trade setup.
This will be a ST with limits set at inside yesterday’s highs -3780. It should
be set at 3920 since we have a big swing, but the fall from yesterday’s highs
are so dramatic that I will place the limit order inside that high. Stops below
the low, its inside 50 pips.
If we don’t get the cs formations we are looking for then
we don’t trade.
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