Here is my analysis for next weeks trading plan for EUR/USD
Overall the current trend is a Bearish Trend, as Price levels are below the 100 and 200 Simple Moving Averages that I have placed.
Since i never manage to place a Short Trade, it may be too late and the trend may come to an end :(
so I set up a Ranging Market setup which will help me determine if the trend will continue to go Bearish or have a reversal to a Bullish trend But if it ranges for the mean time, I hope to catch some good trades along the way.
A brief explanation of my analysis setup
The top and bottom Black Lines are the "Resistance" and "Support" levels that I have chosen to mark my trading area. The center black line is a 0.50 Fibonacci retracement level.
For the green lines they represent the 0.618 and 0.382 retracement levels respectively.
The blue lines are the 0.50 Fibonacci retracement levels for the 0.382 green line to the Black "Support" line and the 0.618 green line to the black "Resistance" line
The red lines are the 0.50 Fibonacci retracement levels from the blue lines to the Black "Resistance" and "Support" lines
The arrows on the chart shows the trade executions
Blue Arrows =Observation areas and Stop-loss areas.
Green Arrows = Areas for Long Positions
Red Arrows=Arrows for Short Positions
On the Left side of the chart,it shows the illustration of the Profit/Loss Ratio of the trades that will be made.
This setup also helps me determine trend formations. If price levels break through my "Resistance" it may signal a Bullish Trend and if it breaks through "Support" levels it signals a possible continuation of the bearish trend.
Overall the current trend is a Bearish Trend, as Price levels are below the 100 and 200 Simple Moving Averages that I have placed.
Since i never manage to place a Short Trade, it may be too late and the trend may come to an end :(
so I set up a Ranging Market setup which will help me determine if the trend will continue to go Bearish or have a reversal to a Bullish trend But if it ranges for the mean time, I hope to catch some good trades along the way.
A brief explanation of my analysis setup
The top and bottom Black Lines are the "Resistance" and "Support" levels that I have chosen to mark my trading area. The center black line is a 0.50 Fibonacci retracement level.
For the green lines they represent the 0.618 and 0.382 retracement levels respectively.
The blue lines are the 0.50 Fibonacci retracement levels for the 0.382 green line to the Black "Support" line and the 0.618 green line to the black "Resistance" line
The red lines are the 0.50 Fibonacci retracement levels from the blue lines to the Black "Resistance" and "Support" lines
The arrows on the chart shows the trade executions
Blue Arrows =Observation areas and Stop-loss areas.
Green Arrows = Areas for Long Positions
Red Arrows=Arrows for Short Positions
On the Left side of the chart,it shows the illustration of the Profit/Loss Ratio of the trades that will be made.
This setup also helps me determine trend formations. If price levels break through my "Resistance" it may signal a Bullish Trend and if it breaks through "Support" levels it signals a possible continuation of the bearish trend.