Looks like EURUSD is going to form a temporary bottom here and break higher in attempt to confuse as many traders as possible.
However on 4 hour the downtrend is well established.
Fib is on . Precisely ran from the low of 1.15536 created on 11/07/2017.
to the high of 1.25378 put in on 01/25/2018.
Entry area is general. I will need to see signs of rejection on 4 hour before I jump in.
Stop loss on trade or idea is indefinite. This is a short-term trade. It either works or it doesn't. I will not have my emotional capital tied up if EURUSD decides to test the highs.
Wait for confirmation before entering. We are entering a COUNTER TREND trade and we should not get greedy. Notice how T2 is slightly before the old major high that still needs to be retested for the market to run higher longer term. If filled I will take half the position off at T1 and trail the other half to T2.
Good luck traders!
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Disclaimer: Oanda data shown. Material is educational only. Trade at your own risk!
4 hour chart shows price as major 50% fib level, which is where we would have expected price to run to in such a downtrend.
Patience is key.
Running longterm fib in purple clearly explains today move. I was correct about the pullback but what in the hell ever made me decide to short IDK. Just distracted trading with college and work. Forgive me gents.
Till next time!
At this point eurusd has not shown any signs of slowing down at this overhead level so I dare not enter yet. Waiting for solid signs of rejection.