Dear Daily Price Action Setup Traders
The trade from last time is still active. EUR/USD has taken some time in order to find some fresh sellers, but they are coming. I believe that it is not going to take much more time, but in the end it doesn’t matter how much it takes for the daily price action setup to materialise. All it matters is the end result.
What is important is that the daily price action setup from yesterday is still intact and there is scope for further declines. The resistance area was not broken. Indeed, it was not even tested, which means that traders are not even willing to cover partially their shorts. Therefore, there is no reason so far to exit this trade.
Today’s daily price action setup is coming from another financial instrument. There is a bullish engulfing pattern that you can see on the daily time frame of DAX. The last two trades I had of DAX are intact and I am just going to add one more to them. That is another really important feature of the winning strategy- to be scalable (but this is a more advanced trading method, which would take me more than a trading article to cover). The support level (10,600) of DAX held fast and now we can see that buyers are returning. New buyers have rushed today and added to their positions from these levels. The next target is the level of 11,000. There is great scope for this trade to work out. The parameters for a long entry here are as follows:
Long trade at 10,785 with a stop just under the level of 10,675. The first target of this trade is 11,000. The stop is placed not under the daily low, but I believe that it is a safe place to place it. Again- this is based on an intraday system I am using to minimize my risk on every trade– so that’s where my stop is placed. I am not using it with every trade- only when I see the right setup on an intraday basis.