With EUR/USD breaking lower through daily support, my bias here remains to play from the short side.
Take a look at my daily zones here:
I think our trading styles are a little different in that I only take entries when price is closer to daily zones, so I actually like your idea of being bullish on the 4 hourly price action.
My only concern then becomes how you manage your risk on a long setup at these prices? Where would you place your stops?
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Thanks for commenting on my post my friend!
In answer to your question, I think my perspective would change in case of trading 1 day candles.
In 4 hours timeframe my entries would be with a higher leverage and looking for shorter duration trades. My stops in this case I put them as I mentioned in the analysis.
As for your daily candlestick analysis, my trading style would change. I would wait for price action near the 1.20 and 1.2040 top. I would prefer to trade a false breakout (entering to the downside) with stop above the 1.20 - 1.2040 ceiling and with lower leverage. And in case of a scenario where that ceiling is broken, I would wait for a pullback and enter to the upside with a stop below the now 1.20 support.
It is good to trade at higher time frames and at key support and resistance. The analysis tends to be more accurate.
PS: I saw your reply to my comment on your post today my friend, but I don't have enough credits to reply to you both hahaha. So I'm replying to you here.
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