Lets take a look on the charts, what is important many of the lines drawn few months ago all the time are actual, things are quite interesting and there are several trading occasions. The strategy I use is either SL or TP, without modification, which is what I like most – simplicity. We will see how my strategy will behave in relation to other more complex ones:
The pair is in a downward trend, but in last sessions we have upward correction. Currently price has reached a resistance which may result in a rebound. H4 chart shows a long candle testing the resistance. I will be watching the pair carefully, there may appear in the near future a sales signal.
We have really interesting situation on Eurodollar. Breaking the strong resistance has resulted in the highest exchange rate since the 2014 and 2015. This may indicate a longer upward trend. A series of candles that re-tested earlier resistance (now support) from the top, further reinforces this image. Yesterday’s candle is a clear pin bar (Price Action, Pin Bar, Fakey, Inside Bar) and I am opening a trade in 50% of its abolition with stop loss below. Take Profit must be sought from the weekly chart and it will be around 1.2040 which will give you a ratio 6:1 profit potential.
The pair seems to be trapped between the two levels of 1.623 and 1.672. Turning to the H4 graph you will see a nice candle bar with a very long wick. Very good buy signal, with stop loss below which will give about 50 pips. Take Profit is about 300 (right at the peak of several-session consolidation). Again good profit ratio (Risk/Reward) 6:1.
Cable looks even better. Testing support led to appearance of a candle pin bar on the daily chart, which is a strong buy signal. Stop Loss in this case (when the position is opened around 50% abolition of the signal candle) is 45-50 pips, and Take Profit is almost 400, which gives even higher R/R equal 8:1.