Well, many people asked how to trade news for pair like EURUSD. It doesn't take a rocket scientist to determine the direction but both directions are still ok as long you put your stop loss.
Below are the expected directions for EURUSD after the NFP news release :-
1. Within expectations - EURUSD rise a bit 2. Beyond expectations - EURUSD down 3. Beyond above expectations - EURUSD down 4. Below expectations - EURUSD Up 5. Beyond below expectations - EURUSD Up
Ok, Remember always put your stop loss after placing your trades.
Most of the time, traders like us failed to determine the price actions. Well, I give you some tips, indicators mostly use to determine the trend lines and the divergences but candlesticks are the price actions. If you want to be a successful trader, you must learn japanese candlestick. For example, what is doji candle? Doji is formed when the indecision occurs between buyers and sellers. Most of the time, when doji is formed, there will be a reversal to the trend but that you need to wait for confirmations before you decide to place any orders.
Looked at the price actions formation in the chart above. You'll see the engulfing, dark cloud, lots of dojis and piercing lines.
EURUSD has extended to a fresh year low at 1.2336 levels not seen since July 2010. Be careful at this level which may going upwards if the correction breaks 1.2470 or it may further to its lowest at 1.2310/1.2275 . Risk/Ratio is very high and always put your stop whenever you place your orders.
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It has been long time that i do not write in this blog but trust me I will always update this blog whenever I have time to do so. Do you know that what makes the price chart or chartist? Price isn't it.. You will be able to know what is the basic things that every trader should know when placing the trades. Let say we have one product to sell and we let the market to determine the price based on demand and supply mechanism. The product price will always find the old prices whenever the demands increase or decrease likewise the currency prices. It will always starts with an open price and when it near to close the trading day, the closing price will assume. So, what is the trick? Well, logically if the previous day open price higher than today open price then you will know that the trend is going down and if the open price of yesterday lower than today's open price then the trend is going up. Do you follow me?
That's it for today and i will continue this subject tomorrow. Cheers.