Which is the best strategy to trade EURUSD in forex?… Eur-Usd is probably the most well known currency pair in the world. Being so high profile it attracts alot of attention. Smart Money knows that this is a gold mine for them and if they can do their magic their profits will be huge.
If you study your charts and watch price moving through the 3 sessions of Asia, London, and New York you will see certain patterns that you need to be aware of.
The movement during Asia is usually a smaller range of 20–50 pips back and forth as Smart Money gather orders for their move in London and/or New York. Watch the London opening price and check the highs and lows from previous sessions and pay attention to daily weekly and monthly highs and lows.
You need to know where price is in the order flow on a long term basis as this determines where price is potentially headed. Make sure you know what the Average True Range (potential daily movement) is and figure out potential targets with this information.
Always be aware of where Retail traders are positioning themselves and trade in opposition to them.
Their stops will be clustered at key levels and potential turning points and these stops are always the fuel that Smart Money uses to make reversals, continuations, breakouts, and fake outs. You need to be acutely aware of where these levels are and patiently trade against the herd.