A couple of weeks ago, I posted a long setup on the EURUSD to the top of the channel it's been stuck in. That worked out quite nicely. Last week Monday, I considered either a breakout above the channel, or a move back down to the lower trendline - and suggested that a buy might be in order down there.
Well, here we are a week later and price reached 1.1200, has touched the lower trendline and has bounced.
Time to go long?
Let's pause for a second and consider two broad trading philosophies.
1. Buy low, sell high.
2. Buy high, sell higher.
As someone who prefers to just follow along with price, I find myself in the second category of trader. And the trade idea that I posted a few weeks ago (the long to the top of the channel) honoured this philosophy - we were trading within an upward trend, on a slightly lower timeframe.
The problem now is that structurally, price is making lower lows and lower highs. That doesn't usually make for good buying opportunities.
So, the trend trader in me says "give it a miss" and so I shall. If I liked trading reversals however, here is what I would do:
Wait for today's candle to print. Set a long buy order above today or Fridays high (whichever is higher), with a stop below the swing low at about 1.1175
I like trends. So I will wait for a trend-like structure to start appearing on the 4-hour chart, or patiently wait for the bulls to break out of the daily channel.
Long-term, the EURUSD looks a like its gearing up for quite a bullish year.
Well, here we are a week later and price reached 1.1200, has touched the lower trendline and has bounced.
Time to go long?
Let's pause for a second and consider two broad trading philosophies.
1. Buy low, sell high.
2. Buy high, sell higher.
As someone who prefers to just follow along with price, I find myself in the second category of trader. And the trade idea that I posted a few weeks ago (the long to the top of the channel) honoured this philosophy - we were trading within an upward trend, on a slightly lower timeframe.
The problem now is that structurally, price is making lower lows and lower highs. That doesn't usually make for good buying opportunities.
So, the trend trader in me says "give it a miss" and so I shall. If I liked trading reversals however, here is what I would do:
Wait for today's candle to print. Set a long buy order above today or Fridays high (whichever is higher), with a stop below the swing low at about 1.1175
I like trends. So I will wait for a trend-like structure to start appearing on the 4-hour chart, or patiently wait for the bulls to break out of the daily channel.
Long-term, the EURUSD looks a like its gearing up for quite a bullish year.