TimStuyts

EURUSD how to use support when trading structure

FX:EURUSD   Euro Fx/U.S. Dollar
344 1 8
A month ago I made a post about buying EURUSD             out of support. Support and resistance is where orders are lining up and whether you call it support or resistance or a balance of forces or call it anything you like, it is there. And everyone who has seen an order book in real life due to his profession or for whatever reason for that matter understand what I mean. We only need to know how to take advantage of that and we don't need an order book to trade it.

Have a look at my posts of a month ago where I called the buy out of 'support'.
snapshot

snapshot


At the time I was looking for a triangle correction for EURUSD             which is still very likely. Nevertheless key to understand is that a triangle tends to move closer and closer around the triangle base line before it breaks out of the triangle by means of a strong move.
This base line is therefore a crucial area especially since we are getting closer and closer to the point of a break out.

Below you see how I traded this in the recent past from the 15min time frame.
snapshot

snapshot


So what you should always look for is a rational entry with a rational stop loss. I'm not using a pending at a certain 'support/resistance' line, I use a valid entry strategy with a clear stop loss level and use 'support/resistance' in my advantage. Hope this example helps all of you and especially those who don't believe in support and resistance . Because it is there, you just need to understand how to use it.

For now we should be focusing on whether we test this base line once again. If we do we might see just one more perfect buy trade and this time it might actually break out of the consolidation of lesser degree. If it doesn't give us that buy set-up we are fine as well and let price break down. Wait for a consolidation and sell the EURUSD             .

I'll try to update once we close in on that level.

Safe trades!

yes that was a perfect prediction
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