First off, hello everyone! This is the first of many posts I will be doing. SO the way I trade is a simple price action strategy I developed, I will be attaching myFXbook soon so everyone can see my track record and trades I take as well.
BUT lets get into the trade...
Recently the EURUSD broke out of a sideways market on the weekly charts. It did retrace back to the event area which is healthy, before getting rejected at a heavy area of supply at 1.23350. It came back down to the retrace/breakout area and managed to put in 2 separate buy signals. Going through my checklist, these buy signals occurred at:
- Key area of support
- Event area (breakout)
- Current long-term trend is still up for the time being (daily), although the weekly is still down
- From the lowest low to the highest high, I look for around a 50% retrace which it has
- An area where a risk of at least 2 to 1 is attainable
First target would would be 1.20332, I will be looking for a reversal signal on a lower time frame daily or 4 hour to exit. If that level is broken my 2nd target is 1.23300.
Stop is at 1.14979 and as I always do I do not risk more than 2% of portfolio per trade. In this instance I have lowered it to 1% because I typically do not trade off the weekly given the larger stops, which make it more difficult to create a 2 to 1, ideally a 3 to 1 R/R.
BUT lets get into the trade...
Recently the EURUSD broke out of a sideways market on the weekly charts. It did retrace back to the event area which is healthy, before getting rejected at a heavy area of supply at 1.23350. It came back down to the retrace/breakout area and managed to put in 2 separate buy signals. Going through my checklist, these buy signals occurred at:
- Key area of support
- Event area (breakout)
- Current long-term trend is still up for the time being (daily), although the weekly is still down
- From the lowest low to the highest high, I look for around a 50% retrace which it has
- An area where a risk of at least 2 to 1 is attainable
First target would would be 1.20332, I will be looking for a reversal signal on a lower time frame daily or 4 hour to exit. If that level is broken my 2nd target is 1.23300.
Stop is at 1.14979 and as I always do I do not risk more than 2% of portfolio per trade. In this instance I have lowered it to 1% because I typically do not trade off the weekly given the larger stops, which make it more difficult to create a 2 to 1, ideally a 3 to 1 R/R.
Comment:
There are 2 consecutive inside bars on the daily, with the last bar having a bullish close. I have placed a buy stop at 1.16768 with a stop around 1.16100 area, approx a 3 to 1 R/R.
If my buy stop is triggered I will have a full position in this trade, 1% risk off the weekly and 1% off the daily. Target profit remains the same.
If my buy stop is triggered I will have a full position in this trade, 1% risk off the weekly and 1% off the daily. Target profit remains the same.
As I still have the basic trading view for the time being, my moving averages from my actual platform are not present. I utilize 4 moving averages (exponential), 11, 28, 50, and 200 day.