Trading plan for EUR/USD on June 12. Simple tips for beginners
June 12, 2023 3:23 am
Analyzing Friday’s trades:
EUR/USD on 30M chart
The EUR/USD pair showed a volatility of 40 pips on Friday. In principle, there is no point in analyzing market movements and events because there were none. The only event of the day was a speech by Luis de Guindos, Vice President of the ECB, who did not provide any new or interesting information. Throughout the day, the pair remained within a limited range, highlighted in the illustration by a rectangle. In other words, on Friday we had a total flat market, which has been ongoing for two weeks, with low volatility and a lack of fundamental and macroeconomic background. “Ideal” conditions for trading…
EUR/USD on 5M chart
Two trading signals materialized on the 5-minute chart. It is fortunate that there were only two, as with such a movement pattern, there could have been many false signals. First, the pair bounced off the level of 1.0761, forming a signal to buy, and then it broke below that level, forming a signal to sell. In the first case, the price moved in the right direction for a maximum of 15 pips, and in the second case, it was even less, but a short position could have been closed with a few pips of profit as the closing had to be manual.
Trading tips on Monday:
On the 30M chart, the pair indicates a slight inclination to terminate its descending trend, but for now, it is moving sideways more than up or down. In the medium term, we anticipate a resumption of the downtrend. However, it may take quite some time before the trend returns. If the pair surpasses the 1.0792 level, it may trade higher. Next week, there will be a significant number of important events, so there is a good chance that movements will be better than this week. The key levels on the 5M chart are 1.0517-1.0533, 1.0607-1.0613, 1.0673, 1.0733, 1.0761, 1.0792, 1.0857-1.0867, 1.0918-1.0933. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. On Monday, there are no important events scheduled neither in the European Union nor in the United States. Therefore, there is nothing to react to, and movements can be very weak and there might be no trends.
Basic trading rules:
1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.
2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.
3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.
4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.
5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.
6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.
How to read charts:
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines are channels or trend lines that display the current trend and show which direction is better to trade.
MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.
Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.
Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
Analyzing Friday’s trades:
EUR/USD on 30M chart
The EUR/USD pair showed a volatility of 40 pips on Friday. In principle, there is no point in analyzing market movements and events because there were none. The only event of the day was a speech by Luis de Guindos, Vice President of the ECB, who did not provide any new or interesting information. Throughout the day, the pair remained within a limited range, highlighted in the illustration by a rectangle. In other words, on Friday we had a total flat market, which has been ongoing for two weeks, with low volatility and a lack of fundamental and macroeconomic background. “Ideal” conditions for trading…
EUR/USD on 5M chart
Two trading signals materialized on the 5-minute chart. It is fortunate that there were only two, as with such a movement pattern, there could have been many false signals. First, the pair bounced off the level of 1.0761, forming a signal to buy, and then it broke below that level, forming a signal to sell. In the first case, the price moved in the right direction for a maximum of 15 pips, and in the second case, it was even less, but a short position could have been closed with a few pips of profit as the closing had to be manual.
Trading tips on Monday:
On the 30M chart, the pair indicates a slight inclination to terminate its descending trend, but for now, it is moving sideways more than up or down. In the medium term, we anticipate a resumption of the downtrend. However, it may take quite some time before the trend returns. If the pair surpasses the 1.0792 level, it may trade higher. Next week, there will be a significant number of important events, so there is a good chance that movements will be better than this week. The key levels on the 5M chart are 1.0517-1.0533, 1.0607-1.0613, 1.0673, 1.0733, 1.0761, 1.0792, 1.0857-1.0867, 1.0918-1.0933. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. On Monday, there are no important events scheduled neither in the European Union nor in the United States. Therefore, there is nothing to react to, and movements can be very weak and there might be no trends.
Basic trading rules:
1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.
2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.
3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.
4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.
5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.
6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.
How to read charts:
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines are channels or trend lines that display the current trend and show which direction is better to trade.
MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.
Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.
Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
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