As a trader, it's important to not only identify potential trading opportunities, but also to manage risk effectively. With that in mind, based on my analysis of the EURAUD pair, I have a bullish bias on the 4-hour timeframe.
One reason for my bullish bias is that the pair has broken through a major resistance level , and has made a new higher high. This indicates that there may be further upside potential for the pair.
However, before entering into a trade, it's important to wait for a pullback to the former resistance level , which should now act as support. This allows for a more favorable risk-reward ratio, as you can place a stop loss below the support level to limit potential losses.
Additionally, it's important to have personal entry criteria in place, such as waiting for confirmation through candlestick patterns or indicators before entering a trade. This helps to ensure that you're entering into trades with a higher probability of success.
Overall, while this analysis and prediction may provide a potential trading opportunity, it's important to remember to manage risk effectively. This includes setting appropriate stop loss levels, and being mindful of position sizing to avoid over-exposure to any one trade.
One reason for my bullish bias is that the pair has broken through a major resistance level , and has made a new higher high. This indicates that there may be further upside potential for the pair.
However, before entering into a trade, it's important to wait for a pullback to the former resistance level , which should now act as support. This allows for a more favorable risk-reward ratio, as you can place a stop loss below the support level to limit potential losses.
Additionally, it's important to have personal entry criteria in place, such as waiting for confirmation through candlestick patterns or indicators before entering a trade. This helps to ensure that you're entering into trades with a higher probability of success.
Overall, while this analysis and prediction may provide a potential trading opportunity, it's important to remember to manage risk effectively. This includes setting appropriate stop loss levels, and being mindful of position sizing to avoid over-exposure to any one trade.