EURUSD MAJOR SUPPORT FOR SWING TRADE LONG

15 de ago. de 2014

EURUSD: Immediate price action is range bound but this range is developing within a major support zone. This is an excellent place to look for swing trade long setups. Here's why: The trend on the broad time frame is still bullish which means it can reassert itself at any time even in the face of a range bound medium term and bearish short term trend. Just below the current price action consolidation is the medium term range low at the 1.3300. This is not only a whole number which carries psychological significance, but this pair had a serious bounce off this level back in November. I am willing to speculate that buyers will be eyeing this level again. In order to get long, a setup and validation is required. If that happens on this 4 hour time frame, I will be looking to go long for a swing trade. I will be looking at 1.3250 area as my reference point for risk For me placing stops is a matter of price structure and taking into account other environmental factors such as the current support zone and any historical price point at the time of validation. Overall, any close below 1.3250 I will cancel the long idea and reevaluate. If the market continues higher from the current zone, I will be looking for 1,3580 area as my conservative target an 1.3725 as my average target. Note: this is a swing trade which means it can take days or weeks to play out. Typical reward to risk varies but 3:1 or great is not unusual. I view of the market is purely technical.

Good trades originate from good analysis. Being prepared for your scenario is key to being a consistent trader. This is part of "anticipating" price action and not reacting. I wrote an article about what makes a good trader "good". My article refers to stock traders, but as any seasoned trader knows, trading is trading, Check out my article here: unconventionaltrader.com/what-makes-a-good-stock-trader