From TradingView · · 1m 30s
A 40 pip bet on EUR/USD
FXCM marks a pullback support on the four hour euro chart and lays out the exact levels for a long.
In brief
FXCM marks a pullback support on the four hour euro chart and lays out the exact levels for a long. The whole trade is three numbers: entry 1.1528, stop 1.1488, target 1.1577, which risks 40 pips to make 49. Originally reported by TradingView.
The euro finds a floor
Price is reacting off 1.1528 on the four hour EUR/USD chart. FXCM reads that level as pullback support and takes it as a long signal.
“The price is reacting off our buy entry level at 1.1528”
Entry at 1.1528
The buy trigger is the support level itself, not a break above it. The idea is to join the bounce as price touches the floor rather than wait for confirmation higher up.
Stop sits 40 pips below
Protection goes at 1.1488, under a lower pullback support. If the euro closes through that shelf, the bounce thesis is dead and the trade is out.
“Our stop loss is set at 1.1488”
Target at 1.1577
Take profit is pinned to the next pullback resistance, 49 pips above entry. That makes it a roughly one to one and a quarter risk to reward trade.
“Our take profit is set at 1.1577, which is a pullback resistance”
Support and resistance, nothing else
The setup rests entirely on prior pullback zones acting as a floor and a ceiling again. No indicator, no news catalyst, just levels the market has respected before.
Most people lose this game
FXCM's own disclosure says 65% of retail CFD accounts lose money with the broker. Position size and leverage matter more than the entry price.
“65% of retail investor accounts lose money when trading CFDs with this provider”
The bottom line
The whole trade is three numbers: entry 1.1528, stop 1.1488, target 1.1577, which risks 40 pips to make 49.
