These support and resistance levels have been proven to be very important in the recent history. You can zoom out to understand how these zones have impacted the price before.
I present a nice short set-up here. After confirmation of the horizontal resistance area , we can go in for a nice trade towards the first level support.
The support level I chose to exit this trade is a relatively quick one. There is much uncertainty in the world right now and with all the news about Minnesota it is not clear what will happen during the weekend.
I suggest to use this weaker level, that under normal circumstances would be very conservative, however in these times I suggest taking more frequent shorter trades.
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- Trading Guru
-------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only!
So this setup is for intraday trading right? Now that we have reached the stop loss would it be better to wait for a position to go long?
Price_Action_Coach
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@Jeremee, which stop loss? the trade is very active bud
Trading-Guru
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@Price_Action_Coach, I'm with Price_Action_Coach here, the stop loss was not hit. I deliberately gave some room for the price to increase first. And the price indeed went up to the resistance after which a downturn started. I think the price action works exactly like predicted so far so I think a SHORT position is still the way to go.
Trading-Guru
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@Jeremee, Oh and it's definitely for intraday trading. Of course this concept means something else in forex compared to stocks, because the forex market is open in the night as well during the week, but it is for a shorter hold of a few days.
Trading-Guru
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I will be posting more of these regularly, so follow me to find out about great trading opportunities
Trading-Guru
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How would you have charted this? Feel free to post a link to your own idea here as well