Today's Technical analysis setup we are going to focus on the EURUSD pair:
Step one: for identifying technical analysis trade ideas
First, we look at the daily time frame to see the major trend.
If you notice in the image we see with our strike 3.0 indicator which is the best technical indicators for intraday trading that we can see that we are currently in an uptrend.
You can easily tell that it is in an uptrend using our technical analysis indicators by them showing the green arrow pointing up on the D1 and W1 time frames. This indicator shows your trend based on various time frames.
Step two: for technical analysis training
Since we know that it is an uptrend the next thing we are looking for is for support and resistance levels. Looking at the chart again we can see two resistance levels have just been broken. Since the resistance is broken we are looking for buy setups which are confirmed with our long-term trend. This is part of the technical analysis basics that you will be learning from this article and we should have a great setup for you.
See image below.
Step 3: Technical Analysis Guide for entries
Now that we have the first two parts complete next we need to find key entry criteria for this trade. The best thing now is to find an area to locate our entry. In this case the trade has moved back to test the resistance which is now supported. See the 4hr chart to notice the support being tested.
Our bias is looking for a buy trade because the price has broken resistance and is now at support. So our main focus is going to look for a break above the red bearish candle that has just formed see image above at 1.0878
If I can get a break above that I will take a long entry with a tight stop. I use a tight stop to ensure that I get the maximum risk to reward possibility with my trading.
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Let me know your thoughts on this Technical analysis setup.