A few days ago, i did a mark up on EURUSD which i have attached below. As you you can see price moved and achieved my Take profit 1 and there is potential for price to make new highs and hit our take profit 2.
In this post, i am going to break down this mark up on an educational basis as i believe it may benefit a lot of people. To begin with, it it very important that you keep your analysis simple and your charts as clean as possible.
I have marked the points of support and resistance with the light grey boxes and these are points in the market where price may pivot. In other words where price will either respect or violate. Will either break and trade below or above or will bounce off. We can see price met out support ( at the bottom) and from this point price started an uptrend. One way you can know this is via the use of trendlines. We can see price broke above the descending trend line i have plotted implying a start of a new trend upward.
Once price made a bullish run it met resistance ( found at the top) and price started to retrace. This is where i used the fibonacci retracement tool. For those that don't know, this tool is widely used by traders to measure retracements ( pullbacks) within the market and the levels on this tool are also areas of support and resistance. It is a very important tool you must all have in your tool box as contributes to making your strategy objective.
The fibonacci was drawn from point A to point B as you can see my entry was marked at 50% retracement level. We then see price rejected from this level and move be bullish and continue the uptrend.
Hope this helps :) i will create more educational videos covering more topics like stop loss placements, take profit levels, trading psychology and much more.
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