The price action appears to have found a range, and I'm hoping to capitalize on it by going short.
Not much to say here except that I am expecting the support / resistance zones currently in play to hold. Also, notice the stochastic oscillator is overbought. Most of the time this has been an accurate predictor of a downside move.
I'm trading this with a market order since the range isn't that big, I'm not that highly leveraged, and EURUSD can whipsaw around quite a bit (especially at the London open), making a limit order less effective.
The main risk here is that the price will go higher before falling lower, stopping me out. In such an event, I might consider setting up a sell limit order to try and catch the price next time it falls (assuming that's possible). Also, if the price does go higher, it might create a little more "clearance room" so I can place a sell limit with enough room to be safe from errant price action, but still be able to make some profit from the range.
Not much to say here except that I am expecting the support / resistance zones currently in play to hold. Also, notice the stochastic oscillator is overbought. Most of the time this has been an accurate predictor of a downside move.
I'm trading this with a market order since the range isn't that big, I'm not that highly leveraged, and EURUSD can whipsaw around quite a bit (especially at the London open), making a limit order less effective.
The main risk here is that the price will go higher before falling lower, stopping me out. In such an event, I might consider setting up a sell limit order to try and catch the price next time it falls (assuming that's possible). Also, if the price does go higher, it might create a little more "clearance room" so I can place a sell limit with enough room to be safe from errant price action, but still be able to make some profit from the range.
Trade closed: stop reached:
Got stopped out.
Re-entered with a new limit order to catch any downside after the recent rise, but still give the price a chance to go higher. See this image:
Re-entered with a new limit order to catch any downside after the recent rise, but still give the price a chance to go higher. See this image:
Back to the charts.