EUR/USD Beginner Level trading

remember the golden Fibonacci numbers are around 32 and 61% but price didnt reverse at these numbers. price reversed around 20% meaning no retracement is expected.

So i place a sell order because price didnt reverse at 38 or 62% meaning the current downtrend is going to be sustained

Price has gone down but has started going up again. I expect price will not be able to break the yellow support line and bounce back to downward movement

Price keeps going up and i spot a new resistance level based on the candles marked with a blue circle so i mark it with a yellow line.

If price breaks through this new level it cold be game over because my Stop Loss is set above this new line

My Stop Loss has been hit but as i said price was able to break the resistance line so an uptrend is ongoing so its a goof time to buy

Good Morning 28/8/2024

Today I take a bird's-eye view of the 1 Hour chart using Bollinger Bands Indicator to look for volatility

As we can see the Bollinger Bands are wide apart indicating high volatility so i hope to catch and ride a trend

We can also see the market is an overall downtrend today since the Asian session

Next, I will switch to thw 5 Minute chart to find an entry point

I switch to the 5 Minute chart and still see a downtrend

So i invoke the Fibonacci Retracement Tool so that i know if any upward retracement is real or fake

basically if any upward movement occurs around the 38 or 61 Fib Levels it means its fake and its just short sellers taking their profits and the down trend will continue after that

Hammer candlestick spotted

I spot a hammer candlestick in a downward trend which is a strong signal that some uoward movement is coming

so i place a buy order

I set my Stop Loss at 1.11352 and price is nearing my Stop Loss.

I had expected the downward trend to reverse because i saw a bullish Hammer candlestick pattern.

I am seeing some upward movement

I am looking for this trade to become profitable by any amount then i close it.

basically the overall market trend is downward so my next trade will be a short trade

Wohoo!! looking good!

I was so scared for this trade and but the hammer candle stick i spotted earlier made me know upward movement was on the way especially because the hammer was green color and appeared in a down trend

For this trade i just wanna break even and make a little profit then close it.

It has been too risky trading against a major down trend

The trade has become profitable

More upward movement

Bird's-eye view showing more upward movement

Price is nearing my Take Profit

Success

My Take Profit has been hit $72

Learning Point

In this trade my ability to identify the Hammer Candlestick pattern in a downward trend enabled me predict an upward trend was coming

The time element is the key factor here.

8 AM Frankfurt time is the fakeout period meaning it has a high chance it will go in opposite direction to the move that happened 4-6 hours before it. Then comes london bar at 9AM frankfurt time or 8 AM london time that hour is the decider if the fakeout will last or continue.

Market doesn't care about hammers or bullish engulfing patterns, these candlestick patterns are just signs if there is buying/selling pressure or not.

You need to understand for every hammer that works there are many that don't. You should not treat any technical indicator or candlestick pattern as a holy grail. Trading is about being flexible and accepting the loss when things don't work out. I know this is easier said then done but if you cut the loss short you will stay in the game long enough to see a winner.

CUP & HANDLE PATTERN

I spotted a cup & handle pattern in am uptrend

Normally this means a down trend may be coming

So i placed a sell trade

SUCCESS
My Take Profit has been hit around $100

I just spotted a potential area of value

I spotted a support level where downward price movement bounced off twice

I have marked this level with a yellow line and opened a buy trade because i expect price to go upward after bouncing off this line