Major Support Zone, Retracement Channel Completed,Long EURUSD, 27th October 2016


EURUSD D1, Rebounding Off from Major Support Zone

EURUSD H1, Retracement Channel Completed, Price Broke Above Retracement Channel

Technical Analysis:
The price is seen rebounding off from a major support zone while a crab pattern was formed within the zone.
Price has already appreciated and made higher high and has also completed a retracement channel. The price has also broken above the retracement channel which signals for the price to appreciate further.
Market Sentiment:
The euro has gained significantly after Draghi’s speech and the price has broken above the previous swing high, together with a crab pattern, and that simply suggested that the price could gain further.
Trading Plan:
First TP level is seen at 1.0928, FR161.8% based on the crab pattern, followed by 1.0974, FR261.8% within a key resistance zone.
Stop loss was set 20 pips below FR78.6% based on the previous swing low to high.
EURUSD M15, Trading Plan

[28/10/16 01:10]
Exited half position to cut loss as the price broke below previous swing low.eurusd-m15-20161027-mod1
[29/10/16 01:34] Price hits take profit and exited fully.
Results: Gain 1.07%eurusd-m15-20161029-results
This was an excellent trade as everything is going according to my trading plan and most importantly, I followed through my trading plan, cut losses when needed and hold the trade accordingly to my plan.
Imagine if I exited 2 hours earlier when the price is just moving slowly and retracing every time it made some gains, I would definitely regret it when the price finally surge in my direction.

Leave a Reply