A while ago we opened a forex signal in EUR/USD. That signal just closed with profit hitting TP as I started writing this forex update, but let's see why I issued it.
For starters, if you look at the hourly forex chart, you can see that the buyers were having trouble at the 100 SMA. It had provided resistance all morning, and it looked like the buyers couldn’t push above it - no matter how hard they tried.
The 100 SMA (green) provided solid resistance.
If we switch to the H4 chart, the picture becomes clearer. The price had been moving down this week after making a double top near 1.21, and the move up was just a retrace.
This is a great bearish setup.
There weren't moving averages on the top side to protect us, but the stochastic was overbought making this chart overbought. Also, the last two candlesticks closed as dojis which are reversal signals. So, we took the trade and now have our pips.