Today’s trade was a Euro March contract with a buy order from a price of 1.15030. The price had been moving in a downward trend until it hit the major support level of the white line at a price of 1.15000 and started to move along that level where it also broke the resistance of the Parabolic SAR green triangles above the price.
The yellow circled green bar is our buy signal as that bar closed near its high and along with the support of the major support level of the white line at a price of 1.15000, we also have the added support of the Parabolic SAR red triangles below the price. We would place a buy stop order just above that bar to enter the market from a price of 1.15030.
Once in the trade we would look for the price to reach its most recent high and as each bar closed higher and green, we would then look for the price to reach the obvious price target of the major support/resistance level of the white line at a price of 1.15500. That would give us our first chance to exit the market at that level somewhere inside the yellow oval. Otherwise, we could wait for the Parabolic SAR red triangles to be broken, which happened just a little later and a little lower in the smaller yellow oval.
Finally, if we had used the Moving Average blue line as our stop loss guide because it had recently crossed above the Moving Average red line, as denoted by the yellow X, then we would not be stopped out yet and could exit the trade later with a possible 12 to 20 more points.
That would give us a profit of at least $600.