I will not be taking the folllowing tradr as im cureently chaning up my trading plan. I will be observing and back testing.
My current idea as of 00:50 19/09, overall is a short position. EURUSD is currently testing the same resistance level and has be attempting to break for weeks now. I have used a Fib retracement level on the previous uptrend on the daily, spotting out the key zones for the down trend. Due to the many retests and has caused alot of consolidation meaning the ideal way for me to trade this (if i were to place the trade) would be to wait and catch the break out.
I feel as though there could potentially be days left until the break out, as the price looks like bullish momentum on the smaller 4 hour chart. i am expecting this momentum to break the resistance and test a previous, ever so slightly higher resistance and make its retrace after this. This is the first step.
Now if this happens you could sell this to the bottom of the range and TP there ready for the next setup. As this doesnt fit my current plan i wouldnt do it either way. Once it hits the bottom of the range area i will wait for the break out and place the SL slightly within the zone incase its a fake out and re enters. TP will be at the next support zone on the daily. i havnt yet checked the pip count.
My current idea as of 00:50 19/09, overall is a short position. EURUSD is currently testing the same resistance level and has be attempting to break for weeks now. I have used a Fib retracement level on the previous uptrend on the daily, spotting out the key zones for the down trend. Due to the many retests and has caused alot of consolidation meaning the ideal way for me to trade this (if i were to place the trade) would be to wait and catch the break out.
I feel as though there could potentially be days left until the break out, as the price looks like bullish momentum on the smaller 4 hour chart. i am expecting this momentum to break the resistance and test a previous, ever so slightly higher resistance and make its retrace after this. This is the first step.
Now if this happens you could sell this to the bottom of the range and TP there ready for the next setup. As this doesnt fit my current plan i wouldnt do it either way. Once it hits the bottom of the range area i will wait for the break out and place the SL slightly within the zone incase its a fake out and re enters. TP will be at the next support zone on the daily. i havnt yet checked the pip count.
Comment:
Only one hour later, something i missed, the chart is showing exhaustion on the bullish side so will be anticipating a drop rather soon and will probably not expect to see the higher resistance i mentioned, possibly a touch at the top of current resistance, its hard for me to tell at the moment.