Hello traders
-Today we had a trade on EUR/USD which is currently in profit due to the NEWS event.
- In the next steps, we will break down this trade and explain why it is risky to trade if you have strong news.
- Chart breakdown
1) On the left side you can see that the major low has not been broken, therefore the price has the potential to continue bullish.
2) Negative confirmations are bearish reactions and big wicks that you can see at the end of momentum.
3) The price is in an overall corrective PA, the structure is more bullish than bearish because we have not broken the major low.
4) But be careful with such trades because we had a lot of negative confirmations, you have to breakdown the whole chart and then make a decision for the trade.
WARNING!
-Strong news was present here. The news was on our side in this case. But be careful when trading the NEWS event, because the main reason why some prop trade firms do not allow you to trade the NEWS event is "slippage". If "slippage" happens there is a chance that the price will "forget" you SL and you will lose more than you should have.
-That was all about this part, if you want more education like this, don't forget to leave a like and write us a comment if something is not clear to you.
-Today we had a trade on EUR/USD which is currently in profit due to the NEWS event.
- In the next steps, we will break down this trade and explain why it is risky to trade if you have strong news.
- Chart breakdown
1) On the left side you can see that the major low has not been broken, therefore the price has the potential to continue bullish.
2) Negative confirmations are bearish reactions and big wicks that you can see at the end of momentum.
3) The price is in an overall corrective PA, the structure is more bullish than bearish because we have not broken the major low.
4) But be careful with such trades because we had a lot of negative confirmations, you have to breakdown the whole chart and then make a decision for the trade.
WARNING!
-Strong news was present here. The news was on our side in this case. But be careful when trading the NEWS event, because the main reason why some prop trade firms do not allow you to trade the NEWS event is "slippage". If "slippage" happens there is a chance that the price will "forget" you SL and you will lose more than you should have.
-That was all about this part, if you want more education like this, don't forget to leave a like and write us a comment if something is not clear to you.