TRADE: EURUSD: SELL@1.11638 Structure + Momentum + Trernd + PA

FX:EURUSD   Euro Fx/U.S. Dollar
3002 23 37
Ok, so anyone who's followed me probably expect that I would only take a trade off some advanced pattern , right? Well, then you might be caught off guard by this trade! There isn't an advanced pattern here that I feel correctly applies to this trade. But regardless, It's a trade I feel is a worthwhile trade. You've often heard me talk about price action being one of my main determinant's as to when to take a trade. And many of you have asked how to read price action. Well, here is a good example.

The pair is in a clear downtrend in the 1HR and 4HR TF's. Here in this 1 Hr             TF, there is a clear indication of bearish price action in the recent spike up and then a equal and actually greater spike back down. This is a "V-reversal". which in this case is clearly bearish price action. Also, there is structure overhead (I called it minor structure but has several touch points in the recent past) that prices bounced off from. And prices have just broken a small bearish flag pattern and retested it. When it retested it, that's when i decided to SELL. This is a clear example of what is bearish price action.


I am short on this pair right now and will ride it down to the lower trend line of the larger triangle pattern where I will take some or all profits and wait for the next move while watching the price action closely. I will have my stops on this trade just above the minor sr structure marked on the chart. If prices get above this structure and stay above it, most likely it will head up to the upper trend line of the larger triangle.

Refer to my previous posts on this pair as to the longer term direction that I believe this pair will take. See the Related Ideas section for links to those posts. Good luck!

Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!

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I also agreed with your opinion
the flag was broken, but just minor. See the upwards trend now. Looks like it was a fake broken bearish flag?
claudegeneva blockchainbros
I agree...but I hope the reverse is comming fast...
+1 Reply
EverythingForex PRO blockchainbros
It's not the broken flag that is the best reason to take the trade but rather the overall bearish price action. The risk:reward on this trade is well worth the risk so that is the reason I took the trade. It does not matter if prices hang around the flag more. I'm not expecting that prices will just drop like a rock. It'll be nice if it did though because if it did do that and hit the bottom trend line of the triangle, it would be a great buy! But for now, just need to wait and be patient. Good luck!
claudegeneva EverythingForex
Good luck !
blockchainbros EverythingForex
shorted some more in the top spikes. Lets see how this plays out.
blockchainbros blockchainbros
@1.11949 short.
Situation is strange...
And why would you think this trade has failed? Not for me, it hasn't. I said that I would put my stops somewhere ABOVE that minor resistance. I hope you don't think that minor resistance line is a FIRM point of resistance! If you do, then you do not know how resistance and support really works! Support and resistance (AND STRUCTURE) are never any one price point. It is ALWAYS price RANGE. Just because I drew a line on the chart where I indicate there is some minor resistance does not mean that price where the line is is THE resistance. Anyway, this trade is still active and has not "FAILED".
Heelfan23 PRO EverythingForex
Also abcd on hourly
I also entered this short yesterday and been on the negative for a while but its starting to shape up the way i analyzed it. I'm with you 100% on the fact that support and resistance is not a specific level but an area.
Thanks. Where did you enter? And why if you don't mind me asking?
DirtyBoss EverythingForex
Absolutely not a problem at all. Entered based on the ichimoku kijun bounce and 55 moving average bounce, plus the weekly pivot point. I also inserted bollinger bands to verify that the price was indeed in a resistance zone. So i actually did a lot of things.
Ahh....the old ichimoku + BB strategy. But 55 MA? That seems an odd number. Anyway, good job getting short though!
DirtyBoss EverythingForex
hahaha. what is wrong with 55MA?
nothing at all, mate! nothing at all.
DirtyBoss EverythingForex
entered at 1.12156
I'm positive that your minor sr structure will definitely hold price
Thank you for your comment I saw the bear flag and agree now is the time to short. What is the target of 109388 based on?
The structure bottom looks to be only 11000 or will it bounce then continue down.
The target is based on the bottom trend line of the larger triangle pattern on the Daily TF. See my Analysis #1 and #2 above in the Related Ideas section to see more of what I am talking about.
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