EUR/USD Beginner Level trading

I'm about to short the EUR/USD meaning I'm about to enter the market by clicking on the SELL button

Why am i doing this? I think EUR/USD exchange rate will fall so i want to profit from the fall.

You can see the price is falling because red candles are going down

I am also using some help from a technical indicator called Bollinger Bands look closely & you will see three lines on the charts.

Candles moving around the top Bollinger band means EUR/USD is oversold and price may soon start falling & this indicates i can profit from the fall

This is why i opened a SELL order. let's see if I'm right

I entered the market at price 1.08324

To protect my position from excessive losses I place my Stop Loss at 1.08384

I also place my Take Profit at 1.08294

I was correct and the EUR/USD exchange rate has fallen to 1.08318

Meaning the exchange rate moved a distance of (entry price - closing price) or 1.08324 - 1.08318 = 0.6 pip

The value of 0.6 pip is $6, so my profit is $6

On days where you have such important data out now, it is very risky to fade these moves.

USD can continue to go down even more today (meaning EUR/USD & other Dollar pairs can continue to go up even more). Let it settle for the day, see where it wants to close.

Yes, a pullback is possible today, but it is not worth the risk. I've seen these days before, and the momentum can last till the close of the day. Because you had such an important news data today, which indicates that the Unemployment is now rising, so this would push the Fed to take action & start to cut rates in the next meeting.

EUR/USD is n a down trend but using the Bollinger Bands Indicator the market seems to be overbought because the candles are at the lower band. I will enter a long position because i think the downward trend will soon end and an upward trend will start

Entry Price = 1.09024

I will place my Stop Loss at 1.09032 which was the lowest price recorded during the Asian session

EUR.USD price has risen to 1.09083 so i exit my position with $59 profit.

Learning Point: This trade showed you how to use the "Bollinger Band Indicator" to indicate when a trend is about to reverse

Hello, Generally on currencies, it is not really a good strategy to trade mean reversion intraday.

Why? Because the price can go up or go down a lot before it actually mean reverts. Today, the primary direction of the trend has been strong Dollar selling since Friday UE data.

That is why all longs would have done quite well. But by same example, if someone was selling for mean reversion, that would not have done well, and would lose a lot of money.

Mean reversion trades on Intraday is not a really profitable strategy in the long term.

But if you are using it, you can use Kairi Relative Index Indicator, which will indicate the percentage deviation from the mean.

For example, the lower window is the deviation. This is daily chart & percentage deviation from the 21EMA. By default Bollinger band is 20 MA, and 2SD the the band from the mean i.e. moving average.

The normal pattern is that when price is a lot deviated from the mean (21 EMA), you take a counter trend trade.

Note that I don't trade this. But if you are using SD (standard deviation) for trading, then you should see the average deviation.

So that when it is actually deviated a lot, much higher than average, that is when you take the counter trend trade.

This worked well on stocks for "buying" not selling, during Covid & during 2001, when the price is going down a lot, and if the stock is blue chip, you will get push up i.e. reversion to the mean. Which is good enough for some traders to make a decent profit.

Today EUR/USD is stuck at support level and if it breaks through I will go short but if it cannot break the support and bounces upwards i will buy

I've added the Relative Strength Index Indicator to see if the market is overbought or oversold. From what i see the market is oversold so i expect an upward trend soon. Watchin to see!!

I've opened a short trade because price has broken through my support line and is falling downwards so I want to benefit from this fall.

SL = 1.09482

TP= 1.0800 (because lots of orders are stacked around this price level today)

I didn't wait for my TP to be hit, i exited early with the $33 profit.

Note: This trade was based on support & resistance levels and there was confirmation from the RSI technical indicator.

Your entry was good, you picked the start of the session move. But you are exiting too quickly.

This is not good Risk Reward, because overtime it is a losing game. You have to push your winners.

My suggestion is that you should try to hold atleast for the first 2 hours of the session, because that is where the meat of the move is i.e. if we are directional.

For example, once the Asian range broke lower, the London was trend down all day. These are may 1 in 5 days, but you make most of the money on these days only if you hold it well till the next levels.

Here is my chart (in hindsight, I don't like to), you had the start of the move. You should hold it till there is actually a sign of reversal, something like move again on 10M. Or you reached the target level or the end of session.

That is the only edge over long term, how much you can push your winners.

Okay

Today I have opened a long trade with the help of the MACD indicator & EMA indicator.

The MACD indicator can be seen below and the blue line crossed the orange line from under meaning upward pressure. The bue line also crossed the orange line from under the zero line which is key.

The EMA line can be seen on the chart (a blue line) and price is currently above the line so it means the currency pair is trading above its 20 day exponential average

So I have opened a long position. lets see what happens

I have set my Stop Loss at 1.09292 because that level has acted as a support you can see price bounced off that level and stated going upwards

Take Profit set at 1.0955 because a lot of orders are stacked at this price so i expect an upward push towards this price.

Price is now moving toward my TP and is testing the resistance line i drew. If price breaks this resistance line then it may mean the up trend is going to be sustained longer

Price moving upward towards my TP and towards the resistance line i drew