EUR/USD Daily Update, Fri 25, March 2011
Good morning,
So we've got what we wanted - market jumped out from 1.4040 area after it has hit 1.618 target from AB-CD down move.
If you didn't enter right from this area - don't be upset, because now market turns to retracement and you will have chance to get in.
Daily
here we can point only two things - trend is bullish, the next target is 1.4340-1.44 area. One think, that you do not want to see is moving market below 1.4050 again. So, if you trade on daily basis your stops should be placed at least below this area.
4-hour chart
Here trend is also bullish, and we can see, that possibly, butterfly "Sell" is forming with 1.618 target at 1.4349 - precisely in the same area as daily one.
So, we may enter on retracement. Stop should be placed below the low of butterfly, because it will be erased only in the case, when market will renew this lows around 1.4040. So, looks like stop should be in the same area as on daily time frame.
hourly chart.
But if you are not a Mr.Buffet, you may try to use this chart. Personally, I think, that enter from 1.4120 area is not bad idea, and place stop somewhere below 0.618 Fib support 1.4087.
(I can't say definitely yet, because I do not see any ABC's that could point the level of Agreement more accurate)
Because this K-area coincide with the low of this nice up bar, and if market still has some power - it should not erase it.
But be aware of this possibility - if it will happen, but butterfly will hold, then possibly, you will have to culculate your loss, and try to reenter from lower levels...
New part of third chapter in Forex Military School has been posted:
https://www.forexpeacearmy.com/forex-forum/forex-military-school/
Everybody welcome...