Direct from the desk of Dane Williams,
This is not your average forex broker email.
Did you catch today’s EUR/GBP analysis on the blog?
After price bounced off higher time frame support, I identified the pair as in play for potential longs.
So lets zoom into an intraday chart and let me go over what I’m thinking.
You can see that above the higher time frame zone, price formed short term resistance at 1, which was then retested as support at 2.
Price then did the same thing at 3 and 4, retesting short term resistance as support. This time a lot cleaner, but all that matters is that price is slowly stepping up higher, confirming what looks like a trend change with the bulls taking charge.
With price above higher time frame support, this is what we want to see if we’re going to buy.
Now price is testing the daily trend line as resistance at 5. If that level goes, then the bulls will really be large and in charge!
In terms of getting an entry, we want to be buying as close as we can to those grey boxes and using them to manage our risk around.
I’ll be seeing how low I can get to buy, and then play for a trend line breakout and new highs.
Aggressive traders place your stops below the grey boxes, conservative traders place your stops below the higher time frame zone.
The long trade idea will only be negated if price breaks through higher time frame support.
What are your thoughts on this trade idea? Hit reply and let me know what you think. I read and reply to everyone inside my Inner Circle who takes the time to chat.
Best of probabilities to you,