ForexFloorTrader

EURUSD DAILY CHART - SHORT TRADE SETUP

Short
OANDA:EURUSD   Euro / U.S. Dollar
DURUSD has formed a lower low and a lower high indicating the trend is reversing from an uptrend to a downward. A new lower low will confirm the reversal in trend. Price is also rejecting higher prices as noted by the long upper shadows (see red ovals). The last two candles are rejection candles as noted by their long upper shadows, red bodies and closing near their lows. In addition I have shown in a previous IDEA that the longer term trend is down. All these conditions indicate price wants to move lower. I have added a stop loss at the lower high. If price truly is in a downward trend then price should not move above this level. I have added my entry price at 1.10350 so that I can get a 2.5:1 reward to risk ratio. Price target is at the next lower low. Once I have setup this trade I do not change it, I simply walk away and let the trade play out eliminating human emotion the number one enemy of traders.

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