How’s everyone coping in these summer markets? A little crazy at the moment – careful out there!
I’ve got a chart on watch to share with you, which actually was brought to my attention by war room trader Veejahbee. So a shout out to you.
EURAUD is now printing a very bearish situation, and it’s got our attention.
Mainly focused on the 4 hour chart right now as it has the best structure to highlight the trade idea. As time goes on the setup may appear more apparent on the daily chart also.
The situation is this, the price has broken below a weekly level. It’s not a major structure level from the weekly point of view, more a minor weekly resistance – still something of good value to be trading from.
The daily chart, and 4 hour chart simultaneously show a break of a trend line structure. The break below the weekly level and trend line structure is obviously a bearish event.
Now price is trading on the negative side of these technical items, we look for further evidence of weakness in the market here so we can build value into a short position.
What we’re waiting for is a reversal signal to form off a lower high on the 4 hour chart.
That would signal further weakness developing under these key technical levels and be a high value shorting opportunity.
To build further value, it would be great to also see the sell signal react off the bottom of either the weekly resistance or the trend line structure. That would create a text-book classic swing trade pattern.
For the guys in the war room, keep your battle station loaded on this chart to receive notifications on your phone about any sell signals that may develop.
Let’s see if this tree grows some fruit.
Mohamed Arif M
but eur on bullish mode, so it may take false break….market pure driven by central bank, so technicals wont work for as of now…..
Lazlo
Hi Dale,
I would like to know if you open one trade at a time till it reaches TP or do you open multiple trades and obviously add on your risk? I am struggling to get up and going coz I see find myself opening multiple trades and not necessarily winning all of them.
If you don’t, assuming your money management does not allow it. How did you remove that urge to open multiple trades at a time?
Replying to: Lazlo
Dale WoodsAuthor
Generally one trade open is a good way to stop over trading destroying your account. So you need to wait until your trade is completed before entering another. You will find that you will have more success in contrast to just opening many positions.