Long or short, the question I want to answer in this Idea. I am analyzing the EURUSD to prepare it for my Monday (11. October 2021) trades.
The bigger Picture
Looking at the bigger picture (weekly chart), we can see a definite bear trend. Yesterday we closed out the Weekly candle below the support level.
Looking at the daily chart, we can see that we ended the week with a bullish movement.
Moving into the hourly chart
In our hourly chart, we are adding two additional bearish trendlines as well as two new levels to get a better image of the short-term movements.
As we can see, if we zoom in a little bit closer, we are currently trading at a resistance that was acting as a support and now acts as resistance since then.
Moving further down to a 15min chart, I am looking at two potential Short entries.
The Entries and Exits
Scenario 1
Generally speaking, I am looking at two possible entries. First, we might go directly down from its current resistance zone or at the trendline, which also has the more significant resistance from our daily and weekly chart above it.
If we go down from our 1hour resistance level, we will place an SL 2x ATR above the last higher point. Which, in this case, would be around 1.15874.
On our Profit level side, we are looking at three different TP levels.
At TP Level 1, we go back to the middle of the support and resistance at around 1.15550.
Risk/Reward 1.41
At TP Level 2, we are going back to the hourly support level at around 1.15400 ish.
Risk/Reward 2.48
And finally, at TP Level 3, we are looking forward to creating new lows at around 1.15250.
Risk Reward 3.55
Scenario 2
In our second scenario, we are looking at two entry points. One at a trendline reversal and one at the daily resistance level zone start.
Here I am looking at price movements changing the direction for an entry. Once I enter the trade, I set the SL as well 2x ATR above the last high point.
Our TP Levels are the same except that we move all three levels one step higher.
TP Level 1 - 1.15760
Risk/Reward trendline entry 2.04
Risk/Reward resistance zone entry 2.12
TP Level 2 - 1.15550
Risk/Reward trendline entry 4.46
Risk/Reward resistance zone entry 4.08
TP Level 3 - 1.15400
Risk/Reward trendline entry 6.07
Risk/Reward resistance zone entry 5.06
This is my opinion on the EURUSD and my trading Ideas. If you like it please make sure to leave a Like, and follow me here on trading view to get notified once I publish new ideas.
Thanks & Happy Trading
Daniel
The bigger Picture
Looking at the bigger picture (weekly chart), we can see a definite bear trend. Yesterday we closed out the Weekly candle below the support level.
Looking at the daily chart, we can see that we ended the week with a bullish movement.
Moving into the hourly chart
In our hourly chart, we are adding two additional bearish trendlines as well as two new levels to get a better image of the short-term movements.
As we can see, if we zoom in a little bit closer, we are currently trading at a resistance that was acting as a support and now acts as resistance since then.
Moving further down to a 15min chart, I am looking at two potential Short entries.
The Entries and Exits
Scenario 1
Generally speaking, I am looking at two possible entries. First, we might go directly down from its current resistance zone or at the trendline, which also has the more significant resistance from our daily and weekly chart above it.
If we go down from our 1hour resistance level, we will place an SL 2x ATR above the last higher point. Which, in this case, would be around 1.15874.
On our Profit level side, we are looking at three different TP levels.
At TP Level 1, we go back to the middle of the support and resistance at around 1.15550.
Risk/Reward 1.41
At TP Level 2, we are going back to the hourly support level at around 1.15400 ish.
Risk/Reward 2.48
And finally, at TP Level 3, we are looking forward to creating new lows at around 1.15250.
Risk Reward 3.55
Scenario 2
In our second scenario, we are looking at two entry points. One at a trendline reversal and one at the daily resistance level zone start.
Here I am looking at price movements changing the direction for an entry. Once I enter the trade, I set the SL as well 2x ATR above the last high point.
Our TP Levels are the same except that we move all three levels one step higher.
TP Level 1 - 1.15760
Risk/Reward trendline entry 2.04
Risk/Reward resistance zone entry 2.12
TP Level 2 - 1.15550
Risk/Reward trendline entry 4.46
Risk/Reward resistance zone entry 4.08
TP Level 3 - 1.15400
Risk/Reward trendline entry 6.07
Risk/Reward resistance zone entry 5.06
This is my opinion on the EURUSD and my trading Ideas. If you like it please make sure to leave a Like, and follow me here on trading view to get notified once I publish new ideas.
Thanks & Happy Trading
Daniel