How PAPLines can help you to plan your swing trades
For those who are following my blog should know by now, we are using purple and pink zone to define the trend.
EURUSD is currently trading below Purple and Pink zone. We should be looking for sell signals in this case, but do also take note of the possible PAPLines support levels. You can cover your short position at PAPLine levels, alternatively, these PAPLines levels can also provide you with swing trade opporunties.
At around 1pm, price start to turn autumn and drop down to PAPLine-S1. A "hammer" sitted nicely on PAPLine-S1 at around 3:20pm Singapore time, If you are shorting, you can choose to take profit here when you spot the "hammer".
This "hammer" break the down move momentum, traded back up to PAPLine-R1 (that is 29 tics from the hammer, on 1 lot, that is $362.50, 10 lots = $3,625). PAPLine-R1 is also the purple resistance zone, price turn autumn again at the sell zone.
An autumn sell signal -- "shooting star" formed inside the purple sell zone. It then traded down to PAPLine-S2. (44 tics from signal, 1 lot, that is $550, 10 lots = $5,550)
Another "hammer" formed at PAPLine-S2! It manage to support the price from falling beyond this level, and traded up to PAPLine-S1 (This little Hammer run up with 14 tics profit. (On 1 lot, that is $175, 10 lots = $1,750)
PAPLines is a good indicator for you to plan your Entries as well as Exits. You do not want to ride a position until you lose your original "paper gain" and turn out to be real losses.