Forming a definable S/R strategy

[Zulu89]

This is how I would handle this setup using S/R and what I refer to as my 'hedging' strategy although I would probably adjust the S/R as new levels are established and therefore my entries may be different by the time the price makes a decisive move (i.e. that would include more effective 'hedging' - hopefully :|) P.S: I wouldn't enter these at the same time i.e. it's either a buy or a sell, never both (obviously).

EDIT: Of course, unless this was leveraged with a small spread, these entry/exit levels wouldn't be any good. The purpose is really to illustrate the strategy.

With this type of strategy, would you use 50% of the move to signal a possible entry?

 

[Neoripley]

With this type of strategy, would you use 50% of the move to signal a possible entry?

It depends. I sometimes use a 50% level as either an entry trigger (needing further confirmation) or as confirmation for some other signal.

 

[Zulu89]

I've been feeling under the weather these past few days with 'flu like symptoms' so i dont think ill trading this week or at least until i feel better.

Anyway i thought i'll post my technical markers and general thoughts for the upcoming week for the eurusd.

A lot of important economic releases are due this week which could make for a very volatile week should reaction to them be mixed. Risk appetite could reverse should any release detract from the positive outlook gained from the equity market rally and the US GDP data released on friday.

EUR/USD

Should price confidently break through last weeks high of 4300, we could see move up to 4720, (18th Dec high). Although not marked on the chart below the 4500-4550 zone is an area i will watch carefully.

Possible Long entry could occur above 4275 with stops placed below 4240. Or a break-retest of the 4300 level(safer option in my opinion)

Would consider going short should price fall below the 4200 level, with last weeks lows as a profit target.

Well hope you guys have a good week

George