EliteTrader101
Short

EurUSD Daily Hammer Fools everybody to go long

FX:EURUSD   Euro Fx/U.S. Dollar
Everyone is bullish because of the hammer on the daily chart , if so then why was the next day a down bar? They were selling at the top after squeezing the shorts and now prices will drop because all the sellers are stopped out or they went long at the top. The EU etf FXE             was a "Bullish Engulfing Pattern" on high volume on the daily so most traders were bullish , but you have to ask yourself if all that high volume was buying then why was the next day down?

I have 2 well defined high volume areas to play against. The top area is no longer in play because prices are much lower so now we play against the lower Very high volume zone. Prices did not pull back much during the end of the day so that is another warning that prices are going much lower to the weekly trend line support.

I'm going to place my sell order at 1.36200 or a bit lower with a tight stop at 1.36300 area with a target at the lows. I will be adding in as this trend progresses.
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