EURUSD (Long'ish short'ish term)

19 apr 2020

At 0.14950 – we had an RSI overbought signal which takes us back to the 9th of March. The next candle on the daily confirmed a trend reversal when it broke through 1.14117.

From there – the next candle tried to push up through a weekly fib level; this was confirmation of the daily down trend. The next candle on the 12th march took price all the way to test the 50 EMA which acted as strong support for the next couple of days. Hiding behind the EMA, was the higher timeframe .618 level & once both were breached, we saw another move to the downside.

On the 20th and 23rd of March – the daily candles formed a nice set of tweezers (the spinners) Price quickly rallied through a weekly Gann level, the former support, now resistance at 1.08780 level. Going through the .382 level and back up through the 50 EMA to reach pretty close to the “Swing High/Low” .618 to push back down off the rejection. This using a strong Gann from the weekly level as resistance down.

On the 3rd, the 6th & the 7th of April – the price was resting on an upward Gann level now acting as support. The Our indicator signalled a reversal in trend (now Bullish) This then took the price up to the higher .618 level again, through the previous S&R level 1.08780 before starting to consolidate between the Gann level at the bottom (weekly) and the Daily .618 above.

There is a very strong Gann down level near the current high – but the last candle bottom is perched on the Gann line below. Both Lines creating what now looks like the end of a descending triangle, with room to come down to the 1.0780 level (Demand zone) and room to push through we could see it hit 1.09900 which is currently the level of the .618 & 50 EMA. However, on the lower time frame (4Hr) there has been a neat little channel forming, this is shown as the dotted lines on the chart.

This could be forming a new higher low – pushing up to the channel, a break above the Gann level would see a push to the upside.

Waiting for confirmation – one way or the other.




Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stock, ETF’s and Forex. Hence each trade setup might have different hold times, entry or exit conditions and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.

6 mag 2020

Trade chiuso: obiettivo raggiunto

Forgot to mention the close of this trade. Done a while back.