Trade Recommendation: EURUSD
The Hammer candlestick formation on the Daily chart is a reversal signal. This means the market has exhausted its move to the downside when this candlestick shows up. In order to confirm this will hold and follow through to the upside, the more conservative approach is to enter the market when the price breaks above the high of the Hammer candlestick.
The market is closed until Sunday evening. Upon the open, if the market opens below Friday’s Hammer candlestick LOW, then cancel this trade.
If the market opens above the Hammer candlestick HIGH, enter at your discretion with a buy limit order of 1.2152 or BETTER.
If the market opens below the Hammer candlestick HIGH and above the Hammer candlestick low, then enter a buy stop entry order at 1.2132.
On all orders place the stop loss and profit targets as stated below.
Entry Price: 1.2132
Stop Loss: 1.2054
Profit Targets: First profit target 1.2203. Second profit target is 1.2285. Once the first profit target is reached, bring the stop loss to breakeven, then as the market moves higher, trail a stop loss on remaining position 35 pips behind to safeguard profits or until second profit target is hit.
Disclaimer: Disclaimer: The writer has no positions in the forex markets but does engage in short-term trading of forex and futures.
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