Simple Euro Trading Tips for EUR traders
You can buy and sell EUR. If the EUR is strong, it will be more expensive. But if the USD is stronger, the EUR will be less expensive. The most liquid forex pair has tight spreads and a lot of movement. So, it would be best if you got an idea of how much money you can earn from this currency pair.
There are various options available to trade the EUR/USD pair. Three simple strategies have been successful for a long time. First, if you are new, you can trade at a smaller size to control risk. Second, if you have more experience, you can trade bigger sizes and take advantage of opportunities.
Buy the pullback or sell
When the EUR/USD price goes up, it can go down. But when it goes down, it doesn't stay down long. So when the supply/demand is different for this currency pair, the EUR/USD price might go in another direction than before.
The pullback strategy identifies levels where the price stops and goes back in the original direction. It often comes at points where there were highs or lows, or it might be where Fibonacci retracement lines are.
Buy in Breakout and Sell
When this pair (of trading) moves back and forth within the exact boundaries, they form something like a trading range. This is when someone can buy or sell with low risk. When the support or resistance breaks, then it goes in that direction with strength.
Entering the market at the right time is essential. If you enter too early, it could stay where it is and turn around. If you enter too late, you could lose money because the position would be in a place that is not stable. You should also know when to close your position.
Narrow Range Patterns
The prices of the pair will often go up or down. They will do this by hitting a barrier and then going to sleep. After doing this, the prices will print narrow range bars that are not as volatile or exciting. So if you buy at this time, the price might change quickly in your favor.
NR7 bar, which marks the narrowest range price bar of the last seven bars. When this happens, it predicts that the price will go up or down in a big way. It is a low-risk entry because you can set your stop loss close to your entry price.