This post is about 4 Hour Analysis of EURUSD and what I did in this chart...
As we all know from the chart, the EURUSD is in a downtrend.
What does a downtrend mean?
- A trend with lower highs and lower lows.
- A trend where resistances are almost always respected and supports are almost always broken.
- A trend where there are no significant UP moves.
- A trend where the BULLS are powerful and BEARS are weak
The MA that's been put up on the chart further prove the point that the Downtrend is still in place.
Now, if we look at
EURUSD
, we can see:
(1) There is a support zone right at where the price is right now.
(2) The price is making lower micro-highs (represented by 2 red down arrows) while trying to bounce off that support which suggests that there is no significant power of the BULLS here.
(3) The white candles, the market is making at the support, are not at all strong and are pretty indecisive (shown on the chart with micro trendlines).
(4) The black candles, on the other hand, are pretty strong and clearly showing that the bears are in full control here.
(5) Supports can easily become resistances in downtrends and the way the price is acting at the support really suggests that the market is looking at this level as a resistance level and not as a support level.
So, I think the market is going to go down again from this level.
What did I do here?
Sold 2 lots @1.09250 USD with conservative stops just above the first high that's been made on 26th September o'19, i.e., on 1.09700. The targets are at-
1. Prior past support at 1.08390 to 1.08350.
2. Another lot will be left with trailing stops at appropriate levels.
I expect this trade to make at least (1.09250 - 1.08390) pips = 86 pips (if this pair follows the trade-plan) with a stop of (1.09700 - 1.09250) pips = 45 pips which makes this trade have a reward – risk ratio of almost 2.
Note: The only red flag that I would like to mention here is:-
If suddenly the price starts giving strong bull candles with higher micro-lows and the price starts breaking a lower micro-high (the highs that's been represented by 2 red down arrows in the chart), thus breaking the formation, we can assume that the market is not going to do what I initially thought.
For traders who want to know more about my techniques or have any queries, you can chat with me directly through private chats. I will reply you back as fast as I can. Also, please do comment in the comment sections below.
Thank You!
As we all know from the chart, the EURUSD is in a downtrend.
What does a downtrend mean?
- A trend with lower highs and lower lows.
- A trend where resistances are almost always respected and supports are almost always broken.
- A trend where there are no significant UP moves.
- A trend where the BULLS are powerful and BEARS are weak
The MA that's been put up on the chart further prove the point that the Downtrend is still in place.
Now, if we look at
EURUSD
, we can see: (1) There is a support zone right at where the price is right now.
(2) The price is making lower micro-highs (represented by 2 red down arrows) while trying to bounce off that support which suggests that there is no significant power of the BULLS here.
(3) The white candles, the market is making at the support, are not at all strong and are pretty indecisive (shown on the chart with micro trendlines).
(4) The black candles, on the other hand, are pretty strong and clearly showing that the bears are in full control here.
(5) Supports can easily become resistances in downtrends and the way the price is acting at the support really suggests that the market is looking at this level as a resistance level and not as a support level.
So, I think the market is going to go down again from this level.
What did I do here?
Sold 2 lots @1.09250 USD with conservative stops just above the first high that's been made on 26th September o'19, i.e., on 1.09700. The targets are at-
1. Prior past support at 1.08390 to 1.08350.
2. Another lot will be left with trailing stops at appropriate levels.
I expect this trade to make at least (1.09250 - 1.08390) pips = 86 pips (if this pair follows the trade-plan) with a stop of (1.09700 - 1.09250) pips = 45 pips which makes this trade have a reward – risk ratio of almost 2.
Note: The only red flag that I would like to mention here is:-
If suddenly the price starts giving strong bull candles with higher micro-lows and the price starts breaking a lower micro-high (the highs that's been represented by 2 red down arrows in the chart), thus breaking the formation, we can assume that the market is not going to do what I initially thought.
For traders who want to know more about my techniques or have any queries, you can chat with me directly through private chats. I will reply you back as fast as I can. Also, please do comment in the comment sections below.
Thank You!
