Foreign Exchange & Commodities Speculation - Constellation 1976 | Trading & Trend Research

Friday, December 11, 2009

EUR/USD --- 1:2.2 R/R trade idea

I entered long EUR/USD 1.4735 with 1.4681 stop for 1.4855 which fives 1:2.2 R/R ratio which is not great but here the other considerations:

Price managed to close 2 days inside the Bollinger Bands and today is shaping like a short legged doji - here is interesting that we have 3 scenarios to play this tight range day:

1 - it might produce acceleration of the prevailing trend - break of 1.4650 targets 1.4626 >> 1.4479

2 - we might have an expanded range day /Bullish engulfing in this case might be/

3 - we break 1.4759 for a test of 1.4855

here I picked the idea to bet on the 3-rd option because of the 89-day ma support and also the close inside the BBAnds often result in a counter move to the 21-Day /mid BB/.





Posted by Kaprikorn at 1:13 AM
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