The EURUSD To Confirm A Breakout?

The EURUSD monthly chart above shows that after almost 20 months in consolidation, price is finally looking to breakout and go on another bear trend. This, of course, needs to be confirmed with not only price closing below support but, due to the length of consolidation, further weakness in price before looking to take any short trades.

As interesting as this is starting to look, a little more patience is required as we want to avoid getting caught in a fake breakout.

We can, however, look deeper into this to see when we could enter and how far could this bear trend potentially could move to. The likely hood of a bear trend establishing itself was always high as the trend prior to consolidation was also bearish. I have marked this above with the first red arrow.

It is in this last trend when I last traded the EURUSD and extracted almost 16 000 pips on 5 compounded trades that I held for 9 months for excellent percentage growth on my account. This was a simple trend to take full advantage of with the whole process taking no more than 20 minutes over the 9-month period. With good preparation and software, recognising good set ups, entering trades and managing them takes minutes a day.

You can seen why trading should not be about compromising time for money through day trading (which is inconsistent anyway) but complete empowerment of both through trading long-term trends.

Don’t let the lack of information on the internet through you off the scent of trend trading. There is a reason why this information is being drowned out. But this blog is like a seed through rubble. You can try and bury the truth but it will always emerge.

The weekly chart above shows price has a bearish bias and bearish trend with price trading below the weekly 200sma and the TDT proprietary trend filter being red. (To know more and to have access to our trend filters, please DM me.)

We now need to see price hold below the drawn in pivot support level from March 2014.

The daily above shows why reversal trades are almost always short lived and why many who repeatedly try and pick tops and bottoms go on to make large losses which lead to blown accounts.

Trading the bounce off support, which was a result of the Italian Referendum, was very likely to be a short-term bounce and that price was likely to correct in the direction of the bearish trend.

That is exactly what has happened and we may have a potential breakout to the downside on the horizon. Long traders with no stop losses will most likely also have no nails now. Trading does not have to be a nail-biting ride.

If the trend holds, then I would like to see price move towards 0.8000, the low of 2000. The major support level at 1.0000 may prove a hindrance though. Aggressive traders will look for short entries above 1.0000 while conservative traders will apply a little more patience and wait for 1.0000 to become resistance before placing any short trades. Any trades taken above 1.0000 should be risk free by the time price reaches support as this may cause a reversal or a deeper-than-wanted pullback.

But note, support and resistance levels get broken when price is in a trend, so my bias is with a break through the figure 1.0000 as opposed to a bounce up.

I will let price dictate what course of action to take.

Trading reversals is an inconsistent and very difficult way of trading and is actually very unnecessary. It is far simpler to allow the reversal to happen, to allow a trend to establish itself and then go in the direction of the established trend for as long as it in play, which you can see from the monthly chart above, can be for months at a time.

Many will argue that trends appear on lower time frames too. Yes that is correct but if you bought an item of clothing and you were told 5 minutes later it was out of fashion and that you have to make a new purchase, you would not be happy. View the trades that you take the same way the same. Think long-term. Fashion trends are in play for a minimum of a season, which is 3 months, and so your aim should be to hold trades for months too.

This brings many benefits one of which is allowing for an initial small risk but a much larger reward. And if you know how to compound, the returns and growth on your account is exponential. This has been the technique of all the best traders and investors for decades. Think Warren Buffet, Jim Rogers, The Turtle Traders, Jessie Livermore to name a few.

Blown trading accounts should never be a part of learning to trade and if you adopt this philosophy, will be a thing of the past. In almost 10 years of trading, I have never blown a trading account and instead have gone from 1 trading account to multiple accounts across all markets.

In short, be smart. Treat trading as a business. Invest. Learn. Ignore the noise. And ALWAYS trade the trend.

Call To Action

FaceBook Live And Periscope

Please follow me on the following channels where I will be conducting live streaming on various aspects of trading. The following links will take you to the web browser versions of the websites. You will need to download the Facebook and Periscope apps to watch me on your phone/ipad.

Please turn on notifications for me to be alerted when I go online.

Facebook: CityTraderLifestyle

Periscope: Zaheer Anwari

Training Course

The Dynamic Trader Apprentice Live

Location: 17th of February At The Hilton Heathrow. Spaces Limited.

To register please click on the following link:

This includes:

  • Training on technical analysis from a trend trading perspective
  • A pullback and a breakout strategy
  • Access to a live community of full time traders and like-minded individuals
  • Access to some of our cutting-edge tools
  • Live weekly Sunday webinars where we prepare for the week ahead
  • Scanned watchlists and training in FX and Stocks saving you £1000s.
  • A grounding in compounding / risk management / exit management / entry points / stoploss calculation and management / portfolio management
  • A trading plan
  • Access to some of our cutting-edge tools
  • An advanced trade log to track your trades
  • A significant discount on eSignal subscription

This is value, training and support you will not find anywhere else and which can be followed with the option of bespoke 1–2–1 training.

To register please click on the following link:

Online Training

For the same training online, please register using the following link:

If you have enjoyed what you have read, I’d be very grateful if you hit the heart button below.

Smart trading!

Zaheer Anwari

For questions on training and the eBook, please connect with me on:

Twitter: Zaheer Anwari

Facebook: CityTraderLifestyle

LinkedIn: Zaheer Anwari

Email: zaheer @ zaheeranwari . com

One clap, two clap, three clap, forty?

By clapping more or less, you can signal to us which stories really stand out.