Dear Trading Idea Traders
Yesterday’s trading idea was definitely a textbook example. The support level at 10,700 definitely held fast. The daily price action setup was a pin bar after a bullish engulfing pattern. We had all the necessary parameters for a long trade. Today, there was a blink of hesitance on the intraday charts, but after London opened, DAX basically went straight up over 190 pips. DAX is currently trading at 10,963 and our first target of 11,000 is almost reached. If you have been following my last posts, there were a few other long trades, which I am still holding. As I say, it is when you let the winners run when you are making the money. The losers are not as important- what you should be looking for is just a few big winners. As long as you control your risk accordingly, your account will take care of itself.
Today’s trading idea is coming from the currency field. I am looking at NZD/USD. There is a bullish engulfing pattern on the daily time frame. It is a bullish engulfing pattern that is against the trend and it is not the safest of trades. It is one that definitely will match a more aggressive approach. I will decide on an intraday basis whether to take this one. If you are more conservative, you would probably not trade this. I still believe that NZD/USD might make a small correction towards the levels of 0.7600. As I said, I will probably not take this trade unless I see a very promising setup on an intraday basis.
If you want to trade this trading idea from a daily time frame perspective, the entry parameters are: 0.7432. The stop should be placed under 0.7305. The target for this trade would be at 0.7600.