Analysis of previous deals:
30M chart of the EUR/USD pair
The EUR/USD pair tried to continue the upward movement on Tuesday, however, the downward correction did not begin yesterday evening and also today, which would allow the MACD indicator to discharge. Thus, the indicator did not manage to go down to the zero level area, therefore, when the upward reversal followed, this signal should not have been worked out. As practice has shown, it is absolutely fair, since the signal would not bring any profit. In fact, the MACD indicator turned up twice. Once again at night, and the second during the European session. But both times are far above zero. The correction for the EUR/USD pair began in the afternoon, which made it possible for the indicator to discharge. Thus, a strong buy signal may form in the near future, as the upward trend continues to persist thanks to the uptrend line. However, there is a night ahead, so you are advised not to open positions at night. Therefore, in any case, you need to wait until morning comes and new signals appear. Take note that none of the levels have been reached during the day. Therefore, novice traders were also deprived of signals to rebound/breakthrough. As a result, no deals should have been opened on the current timeframe on April 20.
5M chart of the EUR/USD pair
Now let's take a look at the 5 minute timeframe. Here, several signals formed at once, each time in the opposite direction. By and large, trading for the entire day was conducted around the 1.2048 level, which is yesterday's high. The first time the price settled above this level was at night, but for obvious reasons this signal should not have been worked out. For the second time it did so at the very beginning of the European session, the quotes bounced off this level, which was a signal to buy. Unfortunately, the pair failed to reach the nearest level (1.2082). Therefore, according to our recommendations, it was not possible to take profit. However, the quotes went up about 20 points, which made it possible to set Stop Loss to breakeven, at which the deal was eventually closed. The third signal was formed again for a rebound from this level and was frankly false. It closed at a loss of 12 points, since just an hour later the price settled below the 1.2048 level, which could also be regarded as a signal. For selling. But in this case, the price failed to reach the nearest level at 1.2023, so this order also closed to zero by Stop Loss. As a result, novice traders could get a loss of 12 points for the whole trading day. A little later, more signals were formed from the 1.2048 level, but they definitely should not have been worked out, since three signals turned out to be false.
How to trade on Wednesday:
We recommend trading on the 30-minute timeframe on Wednesday, still buying, as the upward trend continues at the moment. The upward trend line continues to support bull traders. The MACD indicator was discharged quite well on Tuesday, and the pair corrected. Therefore, we can expect strong buy signals by tomorrow. Also, novice traders can trade from the levels 1.2023, 1.2082 and 1.1990 for a rebound or when it overcomes both directions. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss - to breakeven when the price passes in the right direction by 15-20 points. The situation on the 5-minute timeframe even cleared up, and most of the levels were removed. Therefore, the same levels remain relevant as on the 30-minute timeframe. No important reports slated to be released on April 21.
On the chart:
Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.
Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.
Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.
The MACD indicator (14, 22, 3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).
Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.
Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.