Monday, February 11, 2013

EURUSD buy pattern formation

EURUSD trades with the decreasing volatility last day. The volatility may increase soon and the resistance (last maximum) at 1.3429 will be punched. Let's put pending sell order 1 point higher the resistance level.
We can use 161.8, 261.8 and 423.6 Fibonacco levels as Take profits and the support (last minimum) level as Stop loss.

As we reach each Fibonacci level close the 1/3 of the order amount and move the Stop loss at the previous Fibo level. For example as we reach 161.8 Fibo level close 1/3 of the order amount and move Stop loss to 100 Fibo level (i.e. entry price level).

BUY STOP order

My entry price: 1.3430
My take profit 1: 1.3473
My take profit 2: 1.3545
My take profit 3: 1.3662
My stop loss: 1.3356

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