A potential good setup on the 4h chart from the $EURUSD Stop loss 1.2275, take profit 1.27. Use this swing trade at your own risk. As you know, the underlying price action for the eurodollar is bullish, so a bullish setup around support makes a high probability trade. Risk max. 1% of your capital.
Keep your eyes on $gold $xauusd, because it is at an interesting price level right now. On the weekly charts at a zone of resistance, so there could be some back and forward moving around this level. Which does not mean that the price will return from here. The trend is still bullish, and the fact that the price has been moving with some higher highs and higher lows into resistance, could mean that a break to higher prices is eminent.
For the best entry, look for a bullish setup around daily support, pricezones which are marked with the blue lines. If the price breaks, so the day you could look for a reversal into the green line, which indicates the weekly resistance.
After breaking a long term structure (see image below), $oil $wtiusd broke out above, retrace to the top and is heading to move for higher prices.
A long position at this point is still possible, with the stop loss set to around $62 and the next target of around $71, which would get you a risk to reward of a little over 1 : 1, which of course could be a little disappointing.
Waiting for a retrace to support of course would get you a far better entry and risk to reward ratio, but there is no guarantee that the price will revert to those levels. Long term would the next price to look for a possible reversal or target lie around $76 and $85 in extension.
Today Crypto currencies took a serious dive. But of course, as we are only in $etc and $xrp at the moment, those two are the only ones that are of interest for us at this point.
$xrp found a good level of support around the blue line, also the low of the end of the year 2017. This low was respected and the price bounced off that level even harder as it wend in. As the overall trend is still bullish, a flush like this offers additional force for the price to go up, as the bulls are not ready yet to give up on Ripple yet.
Probably a lot of money was made in the process for the faint hearted to buy at a better price, as others panicked, or stop losses where hit, and money was lost.
A low risk trading strategy for cryptocurrencies, because a lot of you guys in here are again wondering if to hold or not. You can use this to join the ride, but not to let all of your profits vaporise again.
Taken into account that some corrections could range up to sometimes 30-40% of the total price and they act extremely volatile, the total position will be 3% of my trading balance. That way it gives me enough time to manually stop the trade at 1%, the risk I normally take on each trade.
The open is not really important, although you would find a better risk to reward if you would wait for a reversal to the support (or resistance, when you sell). You could also open a position at a breakout (daily candle close above the previous high).
In total I don’t want to take more than 3 crypto trades, so when all things go as bad as they possibly can, only 9% of my total trading account is lost. But that is for each one on his or her own.
After a setup, I will trail the price with a 10 day ema (exponential moving average, google it if you don’t know what is is). If the price goes parabolic and end the trade when the price closes below the 10 day ema.
This strategy will be used on all crypto’s eToro will let me trade, so $BCH, $BTC, $DASH, $ETC, $ETHEREUM, $LTC and $XRP.
Feel free to use it, I think I put down a low risk strategy for a high risk market. And this way you won’t use up all of your money when things go wrong.
Although it is hard to predict what the $EURUSD will do next, we have had some nice possible trading setups last week. You can see on the one hour chart the fast move into support after the FOMC the day before yesterday.
A fast move into support usually is not an indication of a braek, but often the opposite. As you can see after the fast move down, in which the buyers come in again. The bar with the large spike (at the arrow) was the perfect opportunity to go long, perhaps as a swing trade, which would mean that your take profit would have been around this level and you would have earned around 2.8 times your risk.
So you see, beautiful opportunities arise after high impact economic events like the FOMC. So you don’t trade the news, but the moves after the news.
(I regularly post trading ideas like this on my wall. If you find them of interest or have any use, add me to a watch list and don’t miss out on any of them. Keep in mind that not every idea or trade works out and wait for a setup instead of immediately trade at a certain price level (support/resistance). Set your stop loss accordingly to the risk you are willing to take and never let your risk exceed 2% of your balance/account. I trade these analysis myself, if the setup occurs and my risk management permits.)
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