3 rules to beat todays market (possible trade in the EURAUD)
Hey traders, its been a while since the last time I wrote an article, I apologize for that, but I took off most of the last week!!! (because of Easter, hope you had a happy Easter by the way).
Ok, now back to the markets…
If you have been following the markets in the last few months, you know that it has been difficult to trade because of the wild swings we have seen lately…
Still, there are a few things that you can do right now, to take advantage of the current market conditions:
1 – Expand your horizon. Forget about trading only the majors or just the EURUSD, etc. Right now more than in any other time, you need to expand the instruments you trade to make sure you are only trading the ones with the clearest market conditions.
2 – Long term analysis. Right now the long term analysis is something that no one can have the luxury to avoid. If you trade in the direction on the LT market condition, you’ll always have a better likelihood to see your trade move in the intended direction.
3 – Take advantage of short term swings. Now, this is something new, based on how the market has been behaving, it is also very important to take advantage of the short term swings, based on the short term support and resistance levels. So taking partial profits at short term S&R levels could be a good strategy in the current market conditions.
Remember the market is always changing, and we always need to adapt to those changes, never expect the market to adapt to your trading style or strategy, because that’s never going to happen.
What do you think about the way I’m handling current market conditions?
Possible Trade in the EURAUD
So even when the markets don’t seem to “behave well” If you know where to find them, there will always be good trade opportunities.
And the EURAUD could be one example…
Based on the long term charts, its clear that it wants to continue movie down, it broke through an important support level (1.5022) and it is likely to continue moving down at least until it hits its next support level (1.4492).
Here is the LT chart:
What can we do here?
Since we know that the EURAUD is trading in a bearish condition, I’m going to be looking for short opportunities.
So with that information I know what I’m going to do, now I need to find a good place to go short, and in order to do that, I need to look at the short term charts:
So I have two possible scenarios:
1 – The EURAUD retraces back to the main ST resistance level (1.4826) and gives me a signal with downward pressure.
2 – The EURAUD breaks through the ST support level (1.4659).
I’d feel comfortable taking both signals because the range is pretty clear.
What do you think about the currency market conditions? Do you agree with me?
What about the EURAUD possible signal, are you going to take it?
What other currency pairs are you trading?
Please share your thoughts