EURUSD: Trend Reversal Signals Allow to Short

In the previous posts about EURUSD I wrote how we would have to trade in this market. The price reached the upper line of the price channel from the daily timeframe . We could search for possible trend reversal signals using the hourly charts with the exact entry and exit points.

Here is an example of such a short trade, which is based on a bearish divergence and a breakout below the local uptrend line. These signals are trend reversal and we had an opportunity to follow them:
Sell below 1.17920
Stop above 1.19100
Profit target at 1.14950

The trade is active now, and we should manage it properly. For example, it is a good idea to use a trailing stop and move the stop orders to the breakeven as soon as possible. Also, we can fix the part of profit at SMA100 and 1.16000 support. And the rest of the profit we should close at the main line of the price channel . Risk per trade must be no more that 1-2% from the capital.

This setup can be used with any market and timeframes. The idea is, we trade against the main trend following trend reversal signals. The market must be overbought for short trades and oversold for long trades. The price has to reverse from a solid resistance and support zones.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.