On the daily EURUSD chart, we can notice that the 50 MA (red line) served as a resistance for three separate occasions (see blue arrows on chart).
I want to try to take an opportunity from this by going Short close to the area whereby I think the price will yet again bounce against the 50 MA.
Furthermore, the Kimura Trading Sentiment Index shows us that 67% of traders are long the currency whilst only 33% are short.
Statistics show that around 90% of trades lose money because of wrong bets – therefore I want to take advantage of this index, together with the strength of the moving averages by actually doing the contrary of what the majority of traders are doing.
Short EUR/USD from area 1.142.
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