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MoneyMantraCha
Sep 13, 2023 8:19 PM

Why I Think EURUSD Will Continue to Sell Short

EUR/USDOANDA

Description

Hey Rich Friends,

I think EU will continue to sell. Here is what I am looking at:
- Candles are below both EMAs. My bearish confirmations are met.
- MOM is facing down and negative. My bearish confirmations are met.
- STOCH facing down, below 50 and the orange line is above the blue line. My bearish confirmations are met.
- The current candle has closed below the 50 EMA.
- Bearish Harami pattern on H4

My Strategy
Indicators:

50 EMA (blue)
200 EMA (purple)
Momentum (turn on price line)
Stochastic

Bullish confirmations (Up, Above, Over, Higher):
1. Candles above/crossing up 1 or both EMAS
2. MOM is facing up AND/OR above 0.
3. Stoch is facing up. Stoch is above 50. The blue line is above the orange line. Must have all 3 or wait

Bearish confirmations (Down, Below, Under, Lower):
1. Candles below/crossing down 1 or both EMAS
2. MOM is facing down AND/OR below the dotted 0 line.
3. Stoch is facing down. Stoch is below the dotted 50. The blue line is below the orange line. Must have all 3 or wait.

I will be Selling At Market Execution and Setting a Sell Limit At 1.07450 Or Higher

SL: 40 PIPS FROM ENTRY
TP 1: 1.07050 (40 pips) 1:1RR
TP 2: 1.06850 (60 pips) 1:1.5RR
TP 3: 1.06650 (80 pips) 1:2RR

Result:
Pending

Please Do Your Own Analysis And Use Proper Risk Management. If Using Market Execution, Adjust Your Tp And Sl To Your Actual Entry

Trade closed: target reached

Comment

TP 3 Hit!

Comment

You can register for my course here:

themoneymantra.talentlms.com/plus/external-catalog
Comments
TopTradingSignals
Yes, same opinion!
MoneyMantraCha
@TopTradingSignals, Great minds think alike! :)
pfarizy
Great call...
MoneyMantraCha
@pfarizy, Thank you!
simtrader19a
Macro Perspective


MoneyMantraCha
@simtrader19a, Hi! Thank you for sharing! The next time you post a photo as a reply, can please provide more of an explanation for people who may not understand your charts? I think it would add more value to your comment!
simtrader19a
@MoneyMantraCha,
Looking at the current situation in the US we can see we have an inverted yield curve ( red background). This means' the short term bond yield is higher than long bond yield.
Normally 18 month's after an inverted yield curve commences a recession occurs.
In relation to the bonds yields we can see we are getting a better return on bond yields ( risk free) compared to investing in SPX
Bonds are all about interest rates
The work like a see saw, price goes up yields go down
Price goes down yields go
DXY follows the bond yields
If trading Forex DXY is the king , Majors USDXXX & XXXUSD are correlated to DXY
By using the above charts we can see the macro fundamentals of the US economy and understand what is driving the price action,
As technical traders we needs to be aware of what the smart money ( big banks) are doing
Hope this helps
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