In this trade recap, I walk you through a straightforward yet effective EURUSD day trading strategy using trend continuation. By adhering to a well-defined trading plan and employing a pullback entry strategy, I demonstrate how to navigate the forex market with discipline and precision.
How To Make Thousands With This SIMPLE FOREX DAY TRADING STRATEGY for New York Session
🔗 Watch the Full Trade Recap
For a visual walkthrough of this trade, including chart analyses and execution details, watch the full video:
📰 Morning News Analysis
Every trading day begins with a thorough analysis of the morning news to understand potential market movers. On May 8th, I assessed the economic calendar and news releases to gauge market sentiment and volatility expectations.
💱 Selecting the Right Currency Pair
After evaluating various currency pairs, EURUSD stood out due to its clear trend direction and favourable trading conditions. Liquidity and volatility levels were conducive for executing a trend continuation strategy.
🔍 Top-Down Technical Analysis
📆 Daily Timeframe
Starting with the daily chart, I identified the overarching trend and key support and resistance levels. This macro perspective set the stage for more granular analysis.
⏱️ 4-Hour Timeframe
Zooming into the 4-hour chart, I examined recent price action to confirm the trend’s strength and identify potential pullback zones. This timeframe helped in spotting consolidation areas and breakout points.
🕒 15-Minute Chart Analysis
On the 15-minute chart, I conducted a detailed price action analysis to pinpoint an optimal entry point. This involved identifying candlestick patterns and market structure that aligned with the higher timeframe trend.
📐 Utilizing Fibonacci for Entry Planning
I applied the Fibonacci retracement tool to the recent price swing to identify potential pullback levels. The 70% retracement level coincided with a previous support zone, providing a high-probability entry point for the short position.
🛑 Setting Stop Loss and Calculating Profit Target
Risk management is paramount. I placed the stop loss above the recent swing high to protect against unexpected market moves. The profit target was calculated based on a risk-reward ratio of 1:1.5, aligning with my trading plan and ensuring consistency.
🗽 NY Session Intraday Trading Tips
Trading during the New York session requires awareness of increased volatility and potential news releases. I share tips on managing trades during this session, including adjusting stop losses and monitoring for reversal signals.
🧘♀️ Conclusion
This trade exemplifies the importance of following a structured trading plan and utilizing technical analysis tools effectively. By conducting thorough multi-timeframe analysis and adhering to risk management principles, traders can enhance their decision-making process and trading performance.
