Hey traders! Hope everything is going well!
You know I always try to find two things in the instruments I trade:
- A clear market condition
- and a good profit potential
When I talk about the market condition, I mean clear S&R levels, when we have both, clear short term and long term support and resistance levels, we know what the market is going and most importantly, what the market is likely to do.
And for obvious reasons, its very important to trade the instruments that have the best profit potential, you want to increase your risk-reward ratio on each trade. At the end, your over all risk reward ratio will determine how well you’ll do.
So if you look for those two things, you’ll get good results on the long run.
Here are my two possible trades:
GBPJPY Long Signal
The GBPJPY is trading in a very clear bullish condition… just look at the daily chart and you’ll see that was recently rejected from an important support level around 181.34…
This tells me that the GBPJPY is likely to continue its way up until it reaches its next LT resistance level which is at 186.60.
So I’m going to keep looking for long opportunities.
Anyway, here is how the hourly charts looks like:
Here is my strategy:
Stop Long Entry : 185.23
EURUSD Short Signal
The EURUSD on the other hand is trading in a very clear bearish condition… just look at the daily chart and you’ll see it’s got bearish pressure around the resistance level.
I trade based on a very simple logic, most of the time, the market moves from one level to the other.
Since it looks like its being rejected from the resistance level, it is now likely to continue its way down until it reaches the next support level which is at 1.1134
And here is the short term chart:
Here are the details of my order:
Sell stop entry: 1.1292
NOTE: Both are still market orders, the still needs to move in the direction of the trade in order for them to get triggered.
What currency pairs are you trading this week?
What do you think about these two possible signals?
Share your thoughts.