December 30, 2008 06:47

Forex Signal – EUR/USD Still Buying Dips

By:

12-30-08

6:26a GMT – In my signal yesterday I was looking to buy a dip down at 1.3820. Unfortunately the pair shot upward before dipping that far, but has since fallen back down to the 1.4000 range. The RSI touched 70 (overbought) and quickly retreated though recent movement has cleared room for another rise, while base support around 1.3820 continues to push the pair upward.

Trading Idea: I am looking to buy a bullish candelstick signals at any of three support levels: 1.4000, 1.3905 or 1.3820. A return to 1.4370 is the first target with 1.4500 not far behind it.

(click to enlarge)

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7 Comments on "Forex Signal – EUR/USD Still Buying Dips"
  1. Reply
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    Comment left on:
    December 30, 2008 at 08:39
    Abid says:

    Hi Mark, Happy New Year. Can I ask what timeframe chart do you use for entry i.e. at what timeframe do you look for bullish candlestick signals? Regards. Abid

  2. Reply
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    Comment left on:
    December 30, 2008 at 19:50
    Ali says:

    Hi, when you place your trades, what is your stop loss? or how many pips do you usually risk?
    Thanks

  3. Avatar of piphut
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    Comment left on:
    December 30, 2008 at 19:55
    piphut says:

    Thanks for the well wishes Abid. The larger the timeframe the better, but usually I look at the 60m or 30m charts. I might use the 15m rarely but it has to be a real clear signal like a giant doji.

  4. Avatar of piphut
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    Comment left on:
    December 30, 2008 at 19:57
    piphut says:

    Ali, the size of the stop loss depends on 1) where the support/resistance is – the farther behind support and resistance the better, 2) what the volatility of the market is like – I like using the ATR indicator fort his which shows you the Average True Range of the pair, 3) the strength of the signal – if a real clear trend is in place I might make a little more room for my stops but if I am getting mixed signals I will use a tighter stop.

  5. Reply
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    Comment left on:
    December 30, 2008 at 21:36
    Godwin says:

    Hi, using the ATR indicator, how do you place your (period:) do you live it at 14 or you change it?.

  6. Reply
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    Comment left on:
    December 31, 2008 at 07:37
    Abid says:

    Thanks Mark for your help and prompt responses.

  7. Avatar of piphut
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    Comment left on:
    December 31, 2008 at 15:54
    piphut says:

    Godwin, I use the standard 14 for the ATR. I usually use look at the ATR on the 60m charts, and I never go any smaller than 25 pip stop losses on the EUR/USD pair.

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