EURUSD: Selling Opportunities in the Bullish Market

In order to increase the quality of trading signals, you have to use the daily charts in combination with lower timeframes. The daily chart gives us important information about market conditions, possible direction, important levels, and lines. The lower timeframes give the exact trade opportunities with the exact entry and exit points.

Let's look at the daily chart of EURUSD . It is obvious that the price has a higher probability of moving down than to continue the upward movement. Why? Because the price reached the upper line of the price channel . Mainly, this zone gives a reversal with the further pullback to the main line of the price channel . In this case, the upper line is supported by 1.18000 round number, which acts as resistance by default. RSI reached the overbought zone, and it will give us a solid reversal signal. MACD histogram is going to support a downward movement.

How to trade?
We can wait for a bearish candle in the daily chart and, after that, move to the hourly timeframes and search for trend reversal signals. We will be able to open short positions based on a double top , bearish divergences, breakouts below the local uptrend lines. We will have different variants of how to open short trades and all these trades will be relevant with the daily chart . If you decide to trade on the sellers' side, don't forget about the proper risk and money management. In spite of the good situation for sellers, we will trade against the main bullish trend and such trades are rather risky. Don't trade without stop orders and risk 1-2% from your capital.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.