EUR/USD - daily chart
the daily chart is currently in congestion with today's bar being bar nr. 20.
Earliest bar to trade out of congestion is bar 17
best bars to trade are bar 21 through 29. this rule is valid for any timeframe and any market.
Last Friday's attempt to take out the high from Thursday is called 'first time around' on the 4 hr. chart.
If there is another attempt today or tomorrow, it will be called 'second time around' and therefore the high from last Friday is a legitimate buy-stop entry.
Place a buy-stop order 1 pip above the high from Friday's ask-price or add 1 pip plus your broker's spread to the bid-price
In a flat congestion like this one it may be best to wait for a doji bar on the daily chart.
A doji has similar open and close prices, which cannot be more than 3 pips apart.
Very important for this kind of trade is the proper lot-size selection.
The proper lot-size (for any trade) can only be calculated, if there is a stop-loss attached to the trade.
Trading any trade without a stop-loss means trading with a 'mental' stop, and it is easy to become a victim to the market-makers' and market-operators' stop-running techniques, who know exactly where 'mental' stops are sitting.
"a little bit of knowledge is a dangerous thing"