One of the best things a trader can do when planning his trade is to follow the market (instead of trying to guess where it is going).
So if you are trading the EURUSD or planning to trade it, here is what I think we should focus on:
As you can see, it is trading in a short term range (between both green levels). So:
As long as it continues to trade in between the two green levels, I’ll trade the range, and my strategy would be: look for long opportunities around the bottom of the range, and short opportunities around the top of the range.
But there are also more trading scenarios involved here:
- If the market breaks to top of the range: I’ll start looking (only) for long opportunities.
- If the market breaks the bottom of the range: I’ll start looking (only) for short opportunities.
Sounds like a good plan to you?
Share your thoughts.