Here I see a possible short position on the EUR/USD currency pair. Price has made two attempts so far at this major resistance level (1.20810). Price bounced off of this level to the downside in September of last year, and has failed to close above it since. On a different charting platform where I am able to set the scale of my chart to 1x1, I set a Gann fan from the same low that I anchored this Fib retracement to here. On that chart I am showing that the initial move up was riding the 1x4 angle, and then penetrated it, moving to the 1x3 and closing below it on friday. If we see a below the most recent 4-hour chart pullback (1.20005) I will be looking to enter a short position, with TP set to the 50% retracement level, and SL set about 20 pips above the 23.6 retracement level.
Now, if price bounces off of the 23.6 Fib level, and can close above this 1.20810 resistance level, I will be looking to enter long, with a SL set 20 pips below the S/R level, and a TP will be set using the downward trend line that started from the high in July of 08. If price begins a rally, I will draw new Gann angles from this pullback, and estimate my TP based on where the angle it is most closely following land on the trend line.
Any input is more than welcomed, I would love to hear your rebuttals!
Now, if price bounces off of the 23.6 Fib level, and can close above this 1.20810 resistance level, I will be looking to enter long, with a SL set 20 pips below the S/R level, and a TP will be set using the downward trend line that started from the high in July of 08. If price begins a rally, I will draw new Gann angles from this pullback, and estimate my TP based on where the angle it is most closely following land on the trend line.
Any input is more than welcomed, I would love to hear your rebuttals!