EURUSD Technical Analysis
EURUSD : Towards the end of September 2019 the Lower Low and Lower High sequence starting from September 13/2019 high stopped when the bounce off the October 1/2019 lows started a reversal by making higher highs and higher lows. Understanding how a possible short term trend can be terminating is key to catching trade possibilities. Using filters is also key to determine and signal a trader on which side to trade the market. (Filter 1) When EURUSD broke the downside sequence and started making higher highs/higher lows it signalled traders that a possible reversal in trend could be starting. (Filter 2) The pair on October 2/2019 also broke above the bullish wedge breakout pattern which was another signal that EURUSD can reverse higher. (Filter 3) On October 2/2019 when price made a higher high off the lows it formed the first possible Bullish Momentum Price Action Breakout Pattern (green). (Filter 4) This momentum pattern must first make a temporary peak then pullback and attempt a retest of the 50 moving average (must respect and not move below the moving average) before breaking higher above the BUY peak. (Filter 5) Stochastic indicator is used to determine the peak BUY breakout level and where to set stops. In the chart below there were 3 BUY trade signals that triggered in October 2019 (green, pink, purple). All 3 BUY trade setups followed the market conditions and patterns to enter the trade and all 3 trades hit targets for a total of +249 pips.
EURUSD 1 Hour Chart 10.28.2019
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan
*** Always use proper risk/money management according to your account size ***
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