EURUSD: How to Trade Using Bearish Signals
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Here is an example of a short trade. The price is forming a double top chart pattern. It is a reversal pattern at the resistance zone formed by the upper line of the price channel and 1.19000 resistance level.
RSI confirmed the price reversal. The same goes for MACD histogram, which also supports a further downward movement. If the price can stay below the resistance zone, we should expect a downward movement toward SMA100 and the main trend line.
Sell below 1.18500
Stop above 1.19250
Profit Target at 1.16125
Risk per trade must be 1-2% from the capital. When the price drops below SMA50, it will be possible to use a trailing stop and move stop orders to the breakeven.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
RSI confirmed the price reversal. The same goes for MACD histogram, which also supports a further downward movement. If the price can stay below the resistance zone, we should expect a downward movement toward SMA100 and the main trend line.
Sell below 1.18500
Stop above 1.19250
Profit Target at 1.16125
Risk per trade must be 1-2% from the capital. When the price drops below SMA50, it will be possible to use a trailing stop and move stop orders to the breakeven.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Note
it is possible to fix the part of profit and move stop orders into the breakeven!
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