Trade Idea: 2011-9-15 1:54
You might be wondering why I’ve turned to the lower time frames. The answer is quite simple really. Because of the shifting market environment, I have been having a hard time finding swing trade ideas as of late. As a result, I have decided to stick with day trades until I figure out the market.
As you can see on the 15-minute chart of EUR/USD, the pair has been making “higher lows” for a few days now.
I believe that the pair still has room to move up, so I’m planning on buying once it touches the rising trend line. Of course, I’m not going to just buy immediately… I’m going to be patient and wait for bullish reversal candlestick patterns.
Aside from that, I’ll also be on my tippy toes for updates on Europe’s debt crisis. From what I’ve read, Greek Prime Minister George Papandreou, German Chancellor Angela Merkel, and French President Nicolas Sarkozy presented a united front yesterday and clarified that Greece won’t get booted out of the euro zone.
Aww, ain’t that sweet? In any case, their announcement somehow calmed investors.
I’ll certainly have my fingers crossed for more good news to come out of the region. Hopefully, the economic reports we have listed on our forex calendar will give the euro a boost.
Anyway, here’s my game plan:
If I get triggered (around 1.3650) and the pair goes my way, I’ll ultimately aim for new highs at 1.3800, but I will probably take some profits off the table at 1.3720. As for my stop, I’ll be putting it below the most recent swing low and 1.3600 major psychological level.
Let me know what you think of my trade idea!