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Analytics and trading signals for beginners. How to trade EUR/USD on July 12. Analysis of Friday. Getting ready for Monday

Analysis of previous deals:

30M chart of the EUR/USD pair


The EUR/USD pair continued its upward movement on Friday, which had begun a day earlier. Despite the fact that the volatility turned out to be low (about 55 points), this was quite enough to overcome the downtrend line that had just formed. However, breaking the trend line is also a signal. He made it possible to understand that the downtrend, which had lasted for 1.5 months, is completed with a high degree of probability. If so, then the upward movement can now also continue for a long period of time with maximum targets around the level of 1.2300 or higher. A new upward trend line was immediately formed, so now it is already relevant and supports bull traders. On Friday, in general, the movements were very calm, which is not surprising, since there were no important macroeconomic publications and fundamental events that day. One could highlight the speech of European Central Bank President Christine Lagarde, but that meeting was devoted to the fight against climate change, and issues on monetary policy and economics were practically not touched upon.

5M chart of the EUR/USD pair


Several trading signals were generated on the 5-minute timeframe during Friday, but most of them were very inaccurate, and the movements were rather chaotic. Five ovals show trading signals when the price either broke the next level, or bounced off it. When such ovals can be drawn near the level, it means that the signals are absolutely inaccurate. This means that the price was near the level for a long time, and the markets did not understand what to do near it. Thus, it is, of course, recommended to try to ignore such signals. For example, the first signal is on Friday, when the price has moved along the 1.1835 level for more than an hour. Formally, there was a rebound later, but, as we can see, the sell signal turned out to be false. This was followed by a more accurate buy signal, as the price consolidated above the level of 1.1835 and here it was already possible to open long positions. The price did not stay around the 1.1851 level either and broke it in 5 minutes, which is an excellent example of what a strong and clear signal looks like. Around the level of 1.1868, the profit on a long position could have already been fixed, but at the same time, there was no clear signal for a rebound from this level. As a result, this level was overcome, and the upward movement continued for another ten points. In general, for a long trade, novice traders could earn from 27 points to 40 (maximum Take Profit).

Trading tips for Monday:

The downward trend has been canceled on the 30-minute timeframe, and an upward trend is now in effect. Thus, it is recommended to consider buy signals from the MACD indicator, from which we have not received any signals for a very long time. As there were no real trends in the market in the last month. However, the MACD indicator should be discharged to the zero level beforehand. On the 5-minute timeframe, it is recommended to trade from the levels 1.1825, 1.1851, 1.1895, 1.1912 and 1.1921. 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 15-20 points. At 5M TF, the target can be the nearest level if it is not too close or too far away. If located - then you should act according to the situation. No important publications or other events are scheduled for Monday, neither in the European Union nor in the United States. Thus, on Monday we trade on pure "technology".

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.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

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 announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

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 -