EURUSD D1 & H1 reversal at the resistance level: DOWN

       Date: 20 Dec 2019 

Queenie Wu

Trading zone: Consider Support and resistance: 1.11807 – 1.09965 (D1 TMA channel width)  See diagram for the KEY levels shown by the pivot indicators

Strategy: Wave trading between the key support and resistance levels.  Follow the trend direction in the higher timeframe and use the lower timeframe to enter.

D1 Chart: Decreasing trend just started.  Close to the resistance level 3 (1.11610), there is the reversal point at 1.11479

H1 Chart:

We are following the decreasing trend, currently at 1.11128.  Several bearish candles just formed.

Trend direction: use Identify trend indicator: DOWN in both D1 and H1 charts

Expected direction: DOWN in short term; reversal down when the channel ceiling is attained .

Check reversal point in D1 diagram when we reach the ceiling of the ENV and the magnitude of the candle

Entry point: now SELL at 1.11128;

Exit point: D1: We can use the ENV 0.5 floor to exit at TP1: 1.10505

SL: At 1.11807 (the top of the TMA channel; close to the resistance level 3)

RESULT: Prediction DOWN correct.

After reaching the support level 2 (at around the floor of the TMA channel at H1), it reversed up at 1.10901

D1: EURUSD.  A decreasing trend just started. Expected direction: DOWN.  Reversal point at 1.11479

 

H1 EURUSD.  Short term reversal point at 1.11208

Result: After reaching the support level 2, it reversed up at 1.10901