What we can see in the above picture is a more bearish than bullish market. Once the price starts dropping, you ask yourself two questions, either I sell or find support for a possible rebound. In this case, we chose to recognize a support level. As you can see at the top left corner, the time frame of this trade is based on a 4h chart. This means you have to find the support as such, since smaller time frames will not work for a support.
Now that the support level has been identified, and the price has reached that level, we move into smaller time frames to identify a long set up.
Now we find ourselves in h1 time frame, where we have now recognized the trigger of this trade, stop loss and its target. How exactly did we execute this trade?
We have mentioned our level of support in some of our previous videos and/or blog posts. In this particular case, we identified the level of support in our 15 min chart at level .618% of our Fibonacci retracement. The stop loss is located underneath that level. This small level of support, aids the bigger support level identified, as mentioned previously in our 4h chart. The view of this trade comes from a macro view, and follows into a micro precise entry.
The target of this trade is identified by market cycles at price levels of 1.0575. In some market cycles, we can expect major pull backs. To avoid those unnecessary “headaches” we put a stop to this trade and end it as a target.
If you have any questions, feel free to email at [email protected]
6 Comments on “Forex Trade. Let’s find some levels of support. Shall we?”
thx for this great info man…u help me alot…
Hi,
Forex trading is a very useful business with the help of that many people are earning huge amount of the money. I will appreciate the way in which you have shared the forex information with us.
In Forex Trading, one of the best tools an Forex trader can have is a graph. A graph is the most essential tool in a trader’s toolbox, and can help put your asset price before your eyes so you have it at a glance for efficient and effective Forex Trading…
This is really a informative post about how to see the changes in the market and usage of the support chart to maintain all the data. I found this post informative one and follow this blog in the future for more knowledge about forex and stock market.
forex trading
asasasasasa
Hello,
Forex trading is a very useful business with the help of that many people are earning huge amount of the money. I will appreciate the way in which you have shared the forex information with us.