EUR/USD Trading Setups | Forex Factory

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EUR/USD Trading Setups

  • #1
  • First Post: Aug 24, 2008 12:02pm Aug 24, 2008 12:02pm
Hi everybody, i'm a very new trader...i have just started my forex account 1 week ago, so there's a lot of things that i need to learn from you guys...that's y i'm starting this thread to post all my trading setups, so that you guys could give me some advice on my trading plan... i really need help from all of you...so please feel free to drop by often and guide me along with my trading....THANKS....

Since i've just started trading forex...i think i should concentrate on 1 currency pair innitially, and when i could really build up my trading skills then i will move on to the other pairs...the pair that i'm going to start with is EUR?USD...
  • #2
  • Edited 1:09pm Aug 24, 2008 12:38pm | Edited 1:09pm
Hey all, this i my very first trade...please advice...

EUR/USD Daily Chart

Entry SHORT : 1.4798 (Price retest resistance level, and rejected)

Stop Loss : 1.4970 (172 pips from Entry, reason for setting at this price is because, 1.4970 is above the resistance level, if it break this level, i won't want to hold onto my Short position anymore)

Target : 1.4311 ( Next support level)

There is a strong resistance level around 1.4868 tp 1.4960, prices had been rejected by this level several times in the past, so it "should" also do the same this time....i guess...

After a strong downward move...it should retrace...so i drew a fib retracement line on the chart...it shows that the 23.6% retracement line is within the resistance level stated above...

So when prices retest this level and failed...i enter a SHORT position...

Dear all,

1.) Is this a good trade setup?
2.) Is the Stop Loss set properly?
3.) Is this target reachable?
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  • #3
  • Edited 1:27pm Aug 24, 2008 1:16pm | Edited 1:27pm
1) Risk Reward Ratio of 1:4
-Using a risk reward ratio of 1:2 and above is considered a good trade for me.

2) SL and TP i guess should be determined by you.
-In my Long term Strategy, I will add in spreads in your case whereby my SL will be 1.4973. Besides, once the pips goes into +50, I will adjust my SL to breakeven +1 and trail it according to different pairs.

3) Fundamental:
-Both US dollar should trade sideways against the Euro.

4) Technical :
-I would prefer a TP in area of 1.44xx -1.45xx

EDit:
I nvr place my TP or SL at a rounded value. I saw once in book (forgotten which one), that acknowledge us the disadvantages of rounded number in financial market.
  • #4
  • Aug 24, 2008 1:28pm Aug 24, 2008 1:28pm
Quoting mphpopular
3) Fundamental:
-Both US dollar should trade sideways against the Euro.
Thanks for your advice...can you please tell me more about point 3? Why would you say that the US dollar should be trading sideways against the Euro?
  • #5
  • Aug 24, 2008 1:42pm Aug 24, 2008 1:42pm
Actually the point 3 is my spread and also I didn't like to place my SL and TP at rounded number (0,5,10), so i will juz add in a odd number in.

Below is quoted from some one. I'm more towards a technical analysis, so i not sure much about fundamental sides. But after all, EUR is facing a DT by now, but US wont be much better in coming week due to tons of news.

Quote
The US dollar will face two major event risk; the CPI numbers out this week along with the unemployment numbers. (next week)

As we all know that PPI has been very high (multi year highs) and this would or could translate to higher CPI. However many corporations find it easier to reduce employment to deal with rising cost. Alot of companies recently (dow Chemicals, kraft) have said they will increase the prices of their products. So we are seeing a pass through from PPI to CPI.

Ben's speech was carefully prepared; and he said inflation outlook is uncertain but as demand from OECD and China for oil decreases, commodities prices should fall. Question is, how fast can oil drop below 100 level if at all? The Fed is now facing a huge dilemma, the clock is working against them. Not only they are facing dual threats on the economic, the financial crisis is still lingering.

Therefore, the US dollar should trade sideways against the euro for the time being, but as CPI creeps up, we will more likely see a different Fed after the presidential election.

Note: This is only my point of view, differ ppl have own differ view.
  • #6
  • Aug 24, 2008 4:32pm Aug 24, 2008 4:32pm
hi bear:

we were all newbies once.... my advice is to watch who you take your information from. somebody can sound great and really be full of junk science.

study and putting the time in is the only way to know what is going on.

-td
  • #7
  • Aug 25, 2008 12:06am Aug 25, 2008 12:06am
Now the trade is at +75pips an hour before the Europe Session starts...
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  • #8
  • Last Post: Aug 26, 2008 10:39am Aug 26, 2008 10:39am
With the help of German Ifo stats, the EUR/USD pair drop sharply to 1.4587.....in the 15mins chart, the MACD crosses, and the RSI cross over from oversold area to neutral area...if i had taken profit by listening to my indicators...that will be a profit of 211 pips!!!

Too bad...i didn't...i was "hoping" this pair will go further down after the US market open...and that cost me 50pips!!!!!

I was convinced to take profit when the pair went up to 1.4637...ended up with a profit of 161pips...not bad...but could be better...

Can anyone please provide me with some advice on the Trade1???
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