eur/usd
click to enlarge
Okay, for those who did not take the 21 pip stop on the eur/usd alert I think I was able to stuble upon the right chart this time...
we have broken through the support low of 5440 and if we close below that level on this 4hr bar on higher volume than the last bar the trend is still down. After the close of this bar price should pull back up to 5440 and then you should switch your long to short.
The next support low is at 5365. exit your long on a pullback to 5440 and switch your position to short and ride it down to 5365. Any time you enter a trade you want to get out if price falls below the most recent low for a long trade or most recent high for a short trade.
Most short sellers have their entry limit orders just below the low and this selling volume there accelerates a downward move. When price comes back up to the broken low, all those longs who are in the red start selling out to break even and thats why you should too because that selling volume waiting there will cause price to at least bounce back down before price will continue up. if price does not close below 5440 you are still in business.
Cheers, or should I say, FEARS...
Jerry
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