As the market has pushed down and broken the most previous support level I'm predicting trend continuation from this pair.
So how I plan to enter this trade is hopefully the market will retrace a little bit higher towards the broken support level that will now become resistance. Ill place a sell pending order at the 0.236 fib level with stops at the 0.5 fib ...
Trailing Stops should you do it Yes or No?
My answer is yes and no, because everything you do in trading should be tested!! Before you trade a dime. You should have a good idea how your trading plan and strategy is going to perform and what the humps in the road look like so you don't bail on your plan when its going through a rough patch.
Now I TRAIL my stops, ...
EURUSD is approaching an area where we could see some weakness in the market.
4hr timeframe Ive marked out an area where the market has touched the daily resistance level and been rejected.
Now the market will either break through or reverse. We also have divergence on the RSI tilting my bias to the short side a little bit more.
But EMA's are under the price ...
This trade looks 50/50 to me right now.
Broken resistance level
structure levels for profit targets
Bullish RSI divergence
Under the EMA's meaning the underlying market is bearish
The candle stick formation looks weak
I'm going to sit on my hands and wait for a stronger signal to buy or sell.
Market has fallen through support level and has also fallen under the 100 EMA.
Price action has fallen lower than previous swing low.
Also there is RSI divergence meaning RSI and Price action don't match up.
So if market holds and closes below support level i'll be setting up to go short.
Good Luck Trading
I've found for me that on the daily time frame the RSI on a 7 period, close works best.
I've made it a part of my trading strategy to check for RSI Divergence either bullish or bearish before placing a trade.
What is RSI Divergence?
Now RSI divergence is when the RSI doesn't correlate with the price chart, meaning that price action and RSI are not in sync.
XRPUSD joins Bitcoin and falls through daily support level.
If the market stays below this level broken support level I will enter the trade on the open of the next candle.
I'm aiming to hit target, but will lower the stop loss accordingly as the market falls to minimize risk.