Range Bounce - Trade Of The Week

Nice trade on the EURUSD this week with a bounce off the bottom of the range. This range is established on the Daily. Remember the daily chart is viewed by all the big players in the market like banks and governments. This means they have the backing to really move the market so knowing what they may be looking at can increase our probability of a successful trade.

At the same time of the bounce off the bottom of the range, the 5th leg of Elliott wave was in play. This is support for the case of a reversal. The reversal leg "a" of Elliott wave broke the downward trend to give more of a reason to go for a long trade.

A limit order was placed on the "b" retrace of Elliott wave at the 50% and 200MA. C point was made lower down at the trend line made from the highs of leg 1 and 2 of Elliott wave.