EURUSD DAILY | "LOCAL GOOD VALUE" + DIVERGENCES
Overextended %B (sub 2 std dev) indicates local "value".
Divergences on all three of FT, Mom and MACD.
Appears to be bouncing off the 50% fib (shown in black) off the last long term down swing (2011-04-27 to 2012-07-18)
These combine to point to a reversal. Enter at 1.35180.
TP: First target @c1.3600 cluster of previous resistance and the 76.4% of the last big swing up (shown in pink). Or if %B hits upper green band. Stretch target of Fib at c.1.3700 (2013-02-04 peak of last major upward run – shown in dark green)
SL: c.1.3300 to use the 76.4% fib from the swing from 2012-07-18 to 2013-02-04. Alternatively maintain 1:1 risk reward?
Exit if not moving into profit with 3/4 bars.
Overextended %B (sub 2 std dev) indicates local "value".
Divergences on all three of FT, Mom and MACD.
Appears to be bouncing off the 50% fib (shown in black) off the last long term down swing (2011-04-27 to 2012-07-18)
These combine to point to a reversal. Enter at 1.35180.
TP: First target @c1.3600 cluster of previous resistance and the 76.4% of the last big swing up (shown in pink). Or if %B hits upper green band. Stretch target of Fib at c.1.3700 (2013-02-04 peak of last major upward run – shown in dark green)
SL: c.1.3300 to use the 76.4% fib from the swing from 2012-07-18 to 2013-02-04. Alternatively maintain 1:1 risk reward?
Exit if not moving into profit with 3/4 bars.
Trade closed: target reached