I’m looking at a quick trade on the EURUSD identified on the 4hr / 1hr time frame with support provided on multiple time frames.
EURUSD – Daily
We can see the last candle which is current day. Now I took this snapshot slightly late however during the day, the candle was sitting on the daily 50 EMA and 1.17347 as support which I have identified previously. To me this presents a possible entry long but will need confirmation on the intra day time frames.
Looking at the 4h we can see the 4hr 50 & 200 EMA acting as support as well as a bottomed out Stoch RSI which indicates oversold momentum.
Adding to this, I previously had a support/resistance line marked at 1.17326. If we widen out the chart we can see how significant this level is with there being some bounce of this area previously.
EURUSD – 1hr
During the day, we saw price bounce of this support level as well as the 1hr 200 EMA.
A further confluence factor is this channel which we are currently seeing price in. With these factors in mind, I decided to enter this trade long off the EMA, support & channel level with a target of the top of the channel.
Let’s see how this plays out! Update to follow.
I couldn’t have asked for a better result on this trade! It worked out straight to the T which isn’t always the case. Let’s take a look at price action following entry.
EURUSD – 1hr
I entered this trade on the approach to the 1hr 200 EMA and bottom of the channel. During the 3 hours following London open, we saw a huge bullish run to the upside of the channel! Easy pickings! I exited the trade once the target was reached at the top of the channel.
During these moments, you may have the urge to hold on to the trade given how strong the move has been. It is during these times however that you need to refer back to your original trade thesis / reasons for the trade. On top of this, every trade needs to have clear target and exit points to prove your trade thesis correct / incorrect. By doing so, you are practicing objectivity which in a discretionary world can be extremely tough.