Hi all,
Strategy:
Trying to identify liquidity pools which are what the big banks and institutions are looking for at all times, I came up with the EURUSD daily chart and more specific with the 1.3020 level of support. Our goal is to watch for a sell opportunity at current resistance level, aiming for the 1.3020 level.
This strategy is based on the idea that the more obvious a level of support is, the more traders will try to buy around it, placing instantly stop losses (sell orders) below their buy setup.
The more sell orders are sitting above or below a level, the higher the probabilities the big whales will go for it. So joining them while they move markets in one specific direction (down in this one) the easiest for us is to get involved in fast, big moves.
Setup:
Switching to the lower timeframes we do see price having reached a solid resistance level at 1.14400 where we do have the daily 20 EMA, previous support structure and a daily bearish order block. Price never managed to breach above resistance and is heading towards the 1.3020 level. All we need to do is look for a pullback and sell any type of short term rally. Willing to refine current resistance I ve highlighted a 240min bearish order block. Adding fibs when the pullback begins will definitely give us the sweet selling level.
Strategy:
Trying to identify liquidity pools which are what the big banks and institutions are looking for at all times, I came up with the EURUSD daily chart and more specific with the 1.3020 level of support. Our goal is to watch for a sell opportunity at current resistance level, aiming for the 1.3020 level.
This strategy is based on the idea that the more obvious a level of support is, the more traders will try to buy around it, placing instantly stop losses (sell orders) below their buy setup.
The more sell orders are sitting above or below a level, the higher the probabilities the big whales will go for it. So joining them while they move markets in one specific direction (down in this one) the easiest for us is to get involved in fast, big moves.
Setup:
Switching to the lower timeframes we do see price having reached a solid resistance level at 1.14400 where we do have the daily 20 EMA, previous support structure and a daily bearish order block. Price never managed to breach above resistance and is heading towards the 1.3020 level. All we need to do is look for a pullback and sell any type of short term rally. Willing to refine current resistance I ve highlighted a 240min bearish order block. Adding fibs when the pullback begins will definitely give us the sweet selling level.
Comment:
Price seems to rally once again short term. This pullback is what I was looking for. Going short at the 0.618 - 0.707 fib zone and aiming at 1.27 and 1.618 fib extentions of previous short term downtrend is what I am planning to do. A safe level to place your stop loss would be 1.4600
