Morning forex traders,
Our last position on EURUSD was triggered from a Buy signal and we exited the trade near the top and with a very good profit. Since then price has declined and we have remained out of the market but are now considering entering in the direction of the trend once again. However, while the previous trend was up, the current trend looks down.
From the EURUSD chart below, we can see XTL has turned red. This is an indication of weakness but we need confirmation that this is not just a period of rest in the form of a breather before a continuation. Stochastic can help with this by forming a bearish false bar. If we we have red XTL and a Stochastic bearish false bar then we have more confidence in a trade set up to the downside. Once these are in place, we will look for a price pattern set up to enter a short based on our preferred strategy.
Good trend trading…