EUROUSD - LongIn this 30-minute chart of EUR/USD where we can see a hammer candle forming exactly at a key support level. A hammer candle indicates that sellers tried to push the price down but buyers came in strongly and managed to close the candle near the opening level. This shows buying interest at the support zone.
Entry: A possible long entry can be considered once the price moves above the high of the hammer candle. Waiting for confirmation above the high reduces the chances of a false signal.
Stop Loss: The stop loss should be placed just below the low of the hammer candle. If the price breaks below that level, it indicates that the support did not hold.
Target: The first target can be set near the recent swing high. If momentum continues, further targets can be trailed higher by adjusting the stop loss. This way, you protect profits while keeping the trade open for a larger move.
Always remember to manage risk properly and not to risk more than a small percentage of your trading capital on a single trade.
