The following is the four hour chart of EURUSD currency pair as of Feb. 18 around 11 PM EST. If you observe the chart you can see that it was going in a channel for some time and the bottom trend line of the channel was broken around 4 hours back. So I am expecting it will follow that and go down more. But right now Asian market is going. So mostly there is a chance for reversal for some time and again it will follow the downward direction. So observe the hourly chart. In the hourly chart I am using the stochastics and CCI. In the hourly chart the stochastics and the CCI were in oversold region and now trying to come above the oversold region. So its better to wait until it comes to the overbought region or the stochstics moving averages cross again. I think the following are the three ways we can enter a sell trade on this.
1) CCI reaches the overbought region and then try to cross below the overbought region, its a good opportunity to enter the trade.
2) Stochastics reaches the overbought region and then try to cross below the overbought region, its a good opportunity to enter the trade.
3) When the stochastics moving averages cross over its a good opportunity to enter a sell trade.
4) when the price chart reaches the trend line its a good opportunity to enter the trade but we have to use a good stop loss.
Check the following pictures of EURUSD currency pair for four hour and hourly charts.
EURUSD Four Hour Chart:
eurusd four hour channel broken
EURUSD hourly chart:
eurusd hourly chart - observe stochastics and CCI
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