EurUsd Analysis: 03/05/19

UPDATE 03/07/19: I bought at 1.1295 by using strategy 1 and moved stoploss to break even when price was 1.1320.

Conclusions:
- I should close the trade with 15 pips profit before the big news.
- Keep using trade management and money management for every trade.
- Trade was closed because of stop loss.
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Price is entering the bearish mode again.

Let's look back the analysis from last week, the trend line resistance is valid and a sell is a good strategy at that time.


For short term trader like me, things change fast and I have to prepare for all cases,

Strategy 1: Buy 
- A descending triangle is formed
- Price is at previous support: 1.1280 - 1.1300
- RSI is almost oversold

If we count the last 6 bottoms, price were pulled back very quickly. It indicates, buyers are waiting to buy at this level which is right now.

But, we have to have enough fund to accept 100 pips loss in case thing go bad if descending triangle breaks down (price is in bearish mode and buying right now is high risk high reward).



Strategy 2: Wait for more information and do nothing

Not trading is a good thing in forex because we can not decide yet with what we have right now, or the risk and reward is not good.

The descending triangle can be bullish if support is strong enough or bearish if support is not valid.

What we need to do is to wait with patient and have a chance to buy lower.

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