Hey team,
I know my forex trading posts don't get the same response from the community as my crypto posts, but I had to share an update on EUR/USD.
Exactly 1 month ago, I shared a potential EUR/USD long as the pair retested previous daily resistance as support.
Take a look at the following quote from that particular blog.
EUR/USD Hourly:
After price broke above daily resistance and turned it into support, we took the first level of short term resistance to use as a possible entry.
You can see that with the extremely aggressive entry and tight stop, there was a quick 1:3 risk:reward on offer.
But now take a look at where price is on EUR/USD today.
EUR/USD Hourly Updated:
Just a slow grind higher since.
What I wanted to show here is that by using my simple forex support/resistance trading strategy, taking a conservative approach to stop placement can work just as well.
It just takes a little longer for your take profits to be hit, meaning you have to be comfortable holding your positions for a longer period of time.
Now take a look at the following chart with the risk:reward tool drawn on top of it.
EUR/USD Hourly Updated 2:
It shows that even with a conservative stop loss placement, all the way below the daily support/resistance zone, you can still make money if you're patient.
In the case of this particular trade, it would currently be a 1:4 risk:reward if you held.
Trading forex doesn't have to be high risk and aggressive.
You're in total control of your position sizing and stop loss placement so if you're naturally conservative, it can be just as effective if not more.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
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