With the USDollar continuing the downtrend, I am still looking to buy the Euro. In order to enter a new long position, I need to wait for price to pull back to support at 1.12. Then, I need to see proof in price action that the sellers can't take over, and buyers are willing to move price back up. Looking for wicks below 1.12 with daily closes above that level.
The Risk:Reward setup would be to enter long from around 1.12, with invalidation of the move if price breaks down to 1.1035, long-term Fib support level. Profit targets would be just below 1.16. This would give me about a 1:2 risk/reward ratio, the minimum that I look for on any trade.
My standard money management process is to wait for at least the 1:2 target to be hit, take 90% of the position off, move my stop to breakeven, and then let the trade ride to the next major resistance level. Then keep trailing the stop below each successive support level. I will let the market take me out of the full position at maximum profit.
The Risk:Reward setup would be to enter long from around 1.12, with invalidation of the move if price breaks down to 1.1035, long-term Fib support level. Profit targets would be just below 1.16. This would give me about a 1:2 risk/reward ratio, the minimum that I look for on any trade.
My standard money management process is to wait for at least the 1:2 target to be hit, take 90% of the position off, move my stop to breakeven, and then let the trade ride to the next major resistance level. Then keep trailing the stop below each successive support level. I will let the market take me out of the full position at maximum profit.