This is a long signal

Yesterday I analyzed the EURAUD, and wrote about why I thought it was a good idea to look for long opportunities…

If you didnt read it, please take a look at it.

I was waiting for a small pullback, which is what we are getting right now. But what I like the most about this pullback is the significant upward pressure.

Here is the long signal:

EURAUD Long Signal

Focus in the green rectangle… it’s clear that the market doesn’t want to go down… I tried hard, but bull traders stepped in, forming a bullish pattern.

Plus the fact that the pattern is larger than previous candlesticks, makes this a good opportunity to go long.

I don’t like to trade at market, so I’ll use a buy stop order to enter the market at 1.3330

One word of cautious: Later today ECB President Draghi speaks… and you never know how the market could react.

Your Turn

Do you also think the EURAUD has bullish potential?

What do you think about this trade and about my trigger signal?

Let me know in the comment section.

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Himanshu Dutta

    One more thing to ask Mr. Lopez, in this setup , the main purpose to locate trigger order is to confirm the closing price above than red candle?

    • Raul Lopez

      Hello Himanshu,

      I always like to see the market moving in my favor before taking my trades… I think there is no better way to confirm your trades than letting the market move on your favor…

      HTH

      Cheers,

      • Himanshu Dutta

        ok, My doubt cleared ! thank you so much ! CHEERS !

  • Eviano

    Actually, I entered the market immediately I saw that formation on 1 hour chart.

    • Himanshu Dutta

      good eviano !

  • Himanshu Dutta

    what would be the stoploss in this type of strategy ? Dont you think risk reward ratio would not be fine enough to enter into the trade ?

    • Raul Lopez

      Hello Himanshu… You probably didnt read my previous post. We have more than 750 pips before we hit the next LT resistance level…

      Cheers,

      • Himanshu Dutta

        sorry lopez, i did not read your earlier post, it is awesome , i am learning new everyday with you , thank you so much !

  • richard

    Hi Raul it ticks the boxes. The daily EURAUD is in a upward price movement thus a buy trade is the option. It rebounded from strong support at 1.31 and thus a setup on shorter term charts with a rebound up from support indicates a good price action entry. I am also looking at NZD pairs – NZDUSD, NZDEUR,NZDCHF. Down trend price action is clear for these pairs and a trade setup on a rebound down from resistance is definitely an option.
    Thank you .

    • Raul Lopez

      Hello Richard,

      Yep, I hope the EURAUD continues its way up…

      I’m not to keen about trading the NZD crosses right now.

      Good luck!

      Cheers,