EUR/USD has been trading between support and resistance for a month.
On the 4-hour chart, we can see the price bounce perfectly between these two zones.
The support zone – 0.99
The resistance zone – 1.005
We have a nice order block at the bottom of the support zone. I have highlighted this zone in orange.
We take the most previous bearish candle before an impulsive move upwards. Currently, we can see that the price has pierced straight into the order block zone and is currently retracing.
MY target for this OB zone is previous support at the 0.9969 price level.
We have some nice confluence for this order block zone.
We have the OB zone lining up nicely with previous support that the price likes to bounce off of.
We were also expecting the price to come back down to this level because of the price gap we see when looking to the left. I have explained this imbalance in the video below.
Not every single order block will hold. We need to find the ones that have the most confluence surrounding them and enter with proper risk management. We cannot find one and just assume that it will work. Please always do your due diligence before entering an order block.
The Vortex Trader
Prediction Analysis Overview Table
| Analysis Overview Information | Prediction Analysis information |
| On what market is this position based (Forex, Stocks, Crypto, Indices, or Commodities)? | Indices |
| What is the trading position identifier (Name and/or Symbol)? | EUR/USD |
| Is this a Short or Long Position? | Long |
| Would this be considered a Short Term, Medium Term, or Long Term trade? | Medium Term |
| As a Short, Medium, or Long Term trade, which best describes the position (Scalping, Day Trading, Swing Trading, or Position Trading)? | Swing Trading |
| What Time Frame chart is the position based on (1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, Daily, or Weekly chart)? | 4-Hour |
| Depending on the asset, how much do you expect it to move in price or percentage? | From Entry to Target – 0.7% |
| What ratio of risk to reward is this trade/position? Choose your appropriate target(s) | Approximately 3 to 1 Target 2 N/A Target 3 N/A |
| What were the technical analysis tools used? Tick the appropriate boxes; | ☒ Chart Patterns ☐ Indicators ☒ Price Action ☒ Support & Resistance ☒ Trendlines |
| From the technical analysis tools and indicators provided, tick the appropriate boxes for the tools and indicators used to analyze the position; | ☐ Ascending Triangle, ☐ Bollinger Bands, ☐ Candlesticks, ☐ Channel, ☐ Cup & Handle, ☐ Descending Triangle, ☐ Double Bottom, ☐ Double Top, ☐ EMA, ☐ Fibonacci Retracement, ☐ Flag, ☐ Head & Shoulders, ☐ MA, ☐ MACD, ☒ Order Blocks, ☐ Pennant, ☐ Rounding Top Or Bottom, ☐ RSI, ☐ Symmetrical Triangle, ☒ Volume, ☐ Wedge |
Trading Prediction Success Probability Score
FSP ranks the probability of this trade a 5/10
ENTRY SIGNS
- Wait for Price to reach the middle of the Order block zone
- Counter trend (Smaller Risk)
WATCH OUT FOR
- Bears are strong
- Support might not hold
Disclaimer: The FSP probability score is derived from adding and subtracting the positive and negative aspects of the position and is not a definitive sign of how the trade will play out. FSP is not in any way a financial advisor
