Forex Signal # 3 – Trade Setup EUR/GBP

Posted on 26. Apr, 2010 by Jakob in Forex Signals, How To, Random Noise

The picture below is a print-screen of EHR/GBP on a 4-hour chart. The break of the support level was one of my recent trades where I went short, and closed it right before it retraced back up, just above the level and then back down. Now this pair has setup for a perfect double bottom; if and when this pair closes the next one- or four hour candle above 0.8719 I will probably enter on a long trade. I don’t want to see it close more than 50 pips above this level, as this will greatly reduce my chances for an appropriate risk:reward ratio. Normally I would place my stop loss below the two bottoms, but in this case, that would be 120 pips, and I think it will be difficult to get a risk: reward ratio of even 1:2 with such a stop loss. However, if we get a close above 0.8719, the pair is also back in the triangular pattern, and I would then feel comfortable with a stop loss some 10 to 20 pips below the support level (green line). I will be heading to bed with an hour or two, so hopefully we won’t get a break before I am back in front of the screen tomorrow morning. If I enter on a trade, all the details will be posted on facebook in real time. Join the group here.

Tags: forex signal, forex trading, trade setup, Trading Forex

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Forex Signal # 3 – Trade Setup EUR/GBP

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