Heads up! Price on EURCAD is approaching a nice looking demand level on Daily timeframe.
Buy at highlighted demand level. 1.41880 Click To Tweet
Take profit should be at the red line i.e. 300 pips. If you look at the chart, this area has proven to be a strong one, historically. And it seems to be the first area where price really resisted.
Stoploss needs to be at the other end of demand level i.e. about 220 pips away from your position. It seems like a huge risk, but actually it isn’t. And that’s because of two reasons:
These are just two of those so many things that we go through almost every day, with almost every member at Get Your Pips. Our forex mentoring platform is much more than a Forex signals service.We make you think like a trader, enable you to reason your trades and stand by them. No matter what! Click To Tweet
Note: A good gentleman on Facebook asked us if the same level can be traded on H4.
Answer: No, it can’t be. There isn’t any clear demand level for us on H4. At-least not according to our rules. But that doesn’t mean that the price wouldn’t bounce on H4 🙂 It will, obviously. But your Stoploss has to be according to timeframe at which the demand was identified. Let’s have a look at the same chart on four hourly timeframe:
The million dollar question is: where is the demand zone on H4? If we look at the area leading to that big move, there was a swing high, then swing low, and then price shoot. Where can we pin point our demand zone? It’s nowhere. There are some other tiny details to this, but that’s our secret sauce 😉