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EOS Offers Second Chance to Short Off Daily Resistance

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forexbrokr.
@forexbrokr
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Direct from the desk of Dane Williams.



Hey team,

How good has the price action in EOS been lately.

Seriously, probably the most technically trading market on my watch list right now.

If you missed the last time I spoke about the coin on my LeoFinance blog, check out that EOS short trade walkthrough at the link there and remember, all of the setups I share use the method outlined in my support and resistance trading strategy.

But with EOS receiving another kick on the back of this latest Bitcoin led price surge for the entire altcoin market, let's take another look at the market.

Starting with the daily chart below:

EOS/USD Daily:

The trade walkthrough blog that I just linked to, features how we traded short from the higher time frame resistance zone at the top of that chart.

But as you can see, price actually gave you a second chance to take some pips shorting off the zone.

Zoom into an hourly chart and you can really see what I mean:

EOS/USD Hourly:

Focusing our attention on the second retest (marked by the right hand arrow), you can see that price did the following:

  1. Held the daily support zone - Meaning we only look for shorts.
  2. Printed a short term area of support - Just a green hourly candle.
  3. Then retested previous support as resistance - For a low risk, high reward entry of at least 1:3.

You can draw your risk:reward ratios on the charts yourself, but you can surely see how a few +3 unit trades in a row like this, soon make up for a few -1 unit losses that the strategy incurs from time to time.

Hope you had a great weekend, and as always...

Best of probabilities to you,

Dane.



FOREX BROKR | LeoFinance Blog Daily market analysis.

Posted Using LeoFinance Beta