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How to trade EUR/USD on December 27? Simple tips for beginners. Friday passed in a calm, Christmas trade

Analysis of previous deals:

30M chart of the EUR/USD pair


The EUR/USD pair continued to trade within the horizontal channel of 1.1234-1.1355 on Friday. However, now it is no longer very important. The year 2021 ends, so now you should already think about what the pair's movements will be in the next year. For novice traders who use low timeframes in trading, this issue is also not very important. Because the main thing for them is determining the trend on the 30-minute (or hourly) timeframe, as well as determining the levels on the 5-minute timeframe, with which we always try to help them. However, at the moment the pair is tightly stuck inside the horizontal channel, so only the levels 1.1234 and 1.1355 can be sources of signals. And the price is in no hurry to work them off. Therefore, there are practically no signals now. As well as trends. As well as macroeconomic statistics. As well as fundamental events. As well as traders in the market.

5M chart of the EUR/USD pair


On a 5-minute timeframe, the movements of the pair on Friday, upon closer inspection, could even bring newcomers several tens of points of profit. The fact is that the 1.1348 level could be corrected to the level of 1.1342 on Friday, which in turn is Thursday's high. And in this case, one trading signal was formed on Friday. This is a rebound from the 1.1342 level. It was quite possible to work it out, and the price subsequently went down 27 points. This was not enough for the Take Profit to trigger (minimum 30 points), but nevertheless, closer to the evening, beginners could manually close short positions. Therefore, 15 points could be earned on Friday. The main difficulty now is precisely with the local levels, which are formed at the lows and highs of each day. Recall that not every low or high can be a level. Many levels require correction. Therefore, in a flat, this process is much more complicated: the pair is always in a limited range, so the levels need to be constantly corrected.

How to trade on Monday:

On the 30-minute timeframe, the EUR/USD pair continues to be in the horizontal channel of 1.1234-1.1355. Since a downward reversal took place near the upper border of this channel, now we can expect a movement to the level of 1.1234. It is unlikely to be strong. Volatility during New Year's week can be weak. The key levels on the 5-minute timeframe for December 27 are 1.1262, 1.1290, 1.1342-1.1355, 1.1422. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss - to breakeven when the price passes in the right direction by 15 points. At 5M TF, the target can be the nearest level if it is not too close or too far away. If it is, then you should act according to the situation or work according to Take Profit. There are no reports or events scheduled for Monday in the European Union and America.

Basic rules of the trading system:

1) The signal strength is calculated by the time it took to form the signal (bounce or overcome the level). The less time it took, the stronger the signal.

2) If two or more deals were opened near a certain level based on false signals (which did not trigger Take Profit or the nearest target level), then all subsequent signals from this level should be ignored.

3) In a flat, any pair can form a lot of false signals or not form them at all. But in any case, at the first signs of a flat, it is better to stop trading.

4) Trade deals are opened in the time period between the beginning of the European session and until the middle of the American one, when all deals must be closed manually.

5) On the 30-minute TF, using signals from the MACD indicator, you can trade only if there is good volatility and a trend, which is confirmed by a trend line or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 points), then they should be considered as an area of support or resistance.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.

The material has been provided by InstaForex Company -