EURAUD: Buy Signals and How to Use Several Timeframes
Euro Fx/Australian Dollar FX:EURAUD
We talked about EURAUD and possible buy opportunity based on the daily timeframe . That post you can find in the related ideas, in order to understand better how to use several timeframes in trading and get better results.
Now let’s look at the 1H chart and try to find possible entry levels for buy trades.
The price tried to break the downtrend line. But we got a false breakout. This trend line and the formed swing high can be used for buying. If the price breaks the downtrend line and moves above 1.61250, it will be possible to buy with stop orders below 1.60500 support level and a swing low.
If you want to get a more reliable signal, it will be better to wait for the breakout above SMA100. Because this line can stop and reverse the price too. Stop orders for such trades also should be placed below 1.60500 support.
The 3rd entry level can be based on a reversal candle from the support zone between 1.60500 and the main uptrend line from the daily chart . For such trades, stop orders must be placed below the uptrend line.
As we open trades in the direction of the main uptrend from the daily timeframe , we can place profit targets far from entry levels using SMA 200 and the resistance levels from the 1H and the daily charts .
Source: TW DLavrov