What gets me interested in a trade? Case study on EURGBP
I wonder, why do I have so little time on hand? I guess that most of you asking the same question too! So many things to do, yet so little time. Hey, the world is fair because time per day for everyone is fix. Oh my, the fact that you are reading this might be wasting time. What talking me.
Ok, back to EURGBP. First interest in EURGBP starts from this tweet.
Eyes into $eurgbp 1234 pending trigger
— TerraSeeds FX Tflow® (@terraseeds) February 2, 2015
Higher timeframe check
I always get interested in a trade, when higher timeframe shows something. And I want it to be shown with probably just few lines, ideally just a line. So there was a monthly close and after which, price retraced towards that trend line.
After which, look for space
I went on to look into how much space this trade has
— TerraSeeds FX Tflow® (@terraseeds) February 6, 2015
Move to Lower Timeframe for trigger
Identify potential support zone if it is a sell trade
Always aim to lock profit, so for a sell, identify support levels. It is logical to assume these:
1. Previous low of 0.7400 as support
2. ED channel as support. Upper red ED has estimated price of 7325, so add to buffer, 7350 as a support level seems logical
Trading is really that easy!