February 16, 2012
- in Uncategorized by schooloftrade
Euro day trading strategy
We used the 233 range chart to see the bird’s eye view of
this market structure. About 90 days ago
we saw this AB=CD pattern that gave us clues that the euro would continue to
tumble and we can see the magnet and the support of 1.2400 area as an easy spot
for price to move lower to.
this market structure. About 90 days ago
we saw this AB=CD pattern that gave us clues that the euro would continue to
tumble and we can see the magnet and the support of 1.2400 area as an easy spot
for price to move lower to.
We wont use this information for intra-day trading any more
than simply knowing where that support will be below us. I cant use this as a directional bias,
selling short only as example because the timeframe is much to slow. I can only use this as a clue to where price
may reverse.
than simply knowing where that support will be below us. I cant use this as a directional bias,
selling short only as example because the timeframe is much to slow. I can only use this as a clue to where price
may reverse.
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| Euro day Trading Strategy |
Our 89 range chart shows us a major trigger-zone above us as resistance, a medium trigger-zone as support below us, we are just below the LOD from Wednesday (PLOD) and we can see a previous price wedge which will act like a price magnet. It would be very common for the price to bounce off support and head higher and we want to buy when it re-enters the range from yesterday. Looking to buy at the support below us, and buy above the PLOD, and then looking to buy the lows of the price wedge above us if price can move that high today.
The faster timeframe 55 range chart shows us more detail for this day trading strategy. We see the bull price channel was broken and the support of 1.3060 will be a key level to get back above. We can see the PLOD just above us and we look to buy a pullbacks above the PLOD and then buying the lows of the price channel above us. If price falls below 1.2975 we can sell short term but look for the major support 1.2933 and 1.2895 to hold.
