Here we consider the EURUSD currency pair on the D1 chart. The price is moving in the limits of W1 and D1 bearish downtrend, containing the falling Donchian Channel. At the moment, we can observe the price retracement completion: the last bar peak of RSI-Bars oscillator is located on the border of the overbought zone, and that means a prompt price reversal is about to happen when the oscillator signal leaves the triangle area. Parabolic values are moving along the daily trend line, confirming the trend. Donchian Channel confirmation will be obtained after the support level breakout at 1.23505, located below last two Bill Williams fractals. This mark can be used for opening a pending sell order with Stop Loss placed above 1.26072. This level is confirmed by the upper Donchian Channel boundary and the last resistance fractal.
After position opening, Stop Loss is to be moved after the ParabolicSAR values, near the next fractal high. Thus, we are changing the probable profit/loss ratio to the breakeven point
- Position Sell
- Sell stop below 1.23505
- Stop loss above 1.26072
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