Gonçalo Moreira, CMT
Independent Analyst
- EUR/USD may change its value area in the next days and start auctioning lower. In that case the equity needs to be balanced against the five open longs now floating in negative. The problem at the time of writing is the pair is not finding resistance where it needs to, forcing shorts to be entered at market or using stop orders. Open shorts are to be found at 1.0767, 1.0735, 1.0693, and 1.0659.
- New limit orders are seeded to purchase the pair at 1.0481, the bottom of a descending channel and again at 1.0350 which is also the base of the channel containing the price action since the 15th Oct spike high.
The trading methodology reported in this analysis is based on a non-directional approach. It is meant to capture the most amount of pips from the constant price oscillations, either up or down. Each trade has a take profit of 50 pips, a stop loss of 500 pips. The size of each trade is regular, but trades can be stacked around key support and resistance zones, increasing the overall position size around certain price zones. The system can perform either in trending or range bound markets, but it suffers when there is an extreme unidirectional price advance. Buy and sell positions are taken with two separate real accounts.
To learn more about the method, you can watch these special webinar series:
Exploring the Coast Line of Foreign Exchange Land - Part I
Exploring the Coast Line of Foreign Exchange Land - Part II
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