EUR/USD, how to take a good position!
This is more for the rookies in this industry, but here is my view/example on how to take a good position, short EUR/USD in this case, intra-day and day-long. It’s easy to see that the down trend is for days, even weeks in this pair. After huge decline on Friday, caused by good numbers for the US dollar, the pair is trying to consolidate in the last two days. At first, this is happening between support and resistance level, where the symmetrical triangle is ‘taking over’ the pair latter. You can see how accurate is move in between the lines, all you have to do is be patient and wait for the right moment for entry. Nr.1 is great place for short entry, either is on the resistance level, or on the down trendline, it’s up to you. Your SL (stop loss) must be placed above the highest level in the consolidation range, even out of the triangle, beacuse the trend lines could move sometimes, if the sellers in this case, are searching for huge liquidity. After the pair broke up trendline here, you can see how that trendline is become resistance as well and the next decline beggins after, breaking the next supports or targets for the sellers on the way down, 1>2>3>4. Well, the target is up to you, it must be set near or above the next support area, but what important is, to move your SL (Stop Loss) or previous potential loss, into take profit area, in other words, when your SL is converted into a protected profit! Never target on how much money you need or want, always target a technical levels! Trade what you see, not what you think! Happy trading. If you have any questions, you’re welcome.