Hi traders, i won't be long in this explanation for the background of this trading opportunity is the same of my previouos eurusd analysis. The bottom line is that we are now looking for simple patterns to go short. This flag pattern for my view has been broken right now. The last red candle had closed below an important psychological number (1,0400). My position would be divided in two parts as shown on the chart above.
If you have any comment or suggestion, please fill the comment section below. Otherwise, see you in the next chart!
Trade ist aktiv
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Kommentar
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If you're not involved yet, here is another reason for entry at better level: 2618 at market!
Hey @ojgrand , as you can see on the screenshot below price is at previous structure right now, we formed a nice ascending trend line that if broken could be a decent short opportunity. Thanks for the comment by the way!
Roker1
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That long wick ruins our risk to reward ratio though
@ojgrand, i am personally not trading until the new year, because of very low volume, in holiday periods markets could go mad. But for educational purpose i would say that the setup itself is one of my favorite. Engulfing candle at previous support, RSI divergence, structure, that's enough for me to trade. A break of the trendline would be the confirmation signal. Based on the size of the breaking candle i would either wait for a retracement or sell the close of that candle. Hope it helps!
Telson
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Totally agree on the long term short position.
Check this out for long term, bearing in mind the retrace comment: