I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Sell EUR/USD
Is the dollar oversold? I believe it might be for this pair. It has been in a super strong rally and I'm looking some kind of pullback. Price has been trading sideways recently creating a bunch of spinning tops signaling bullish fatigue and/or indecision. While price has remained within a tight range, the oscillator has steadily weakened, another sign I read that the bulls are tired.
I look for the pair to drop to either one of these levels: 1) orange 20 EMA 2) 1.5100 handle 3) .236 Fib level. I'm going to sell now at 1.5200. My stop loss (SL) will be 1.5290, above the most recent spike high. Even though I believe there is strong resistance at 1.5250, I decided to give my stop loss some wiggle room to compensate for the recent choppiness in price. My profit target (PT) will initially be 1.5100. I will post any trade adjustments below in my comments section, as I may decide to take profits earlier in this trade if price action tells me so.
Sell EUR/USD @ 1.5200 | SL: 1.5290 | PT: 1.5100
