Wash, rinse, and repeat trade! 9-25-19 EURGBP
Updated
So I often see setups of past moves repeated in smaller timeframes. A lot of people might think a small timeframe trade setup needs eyeball attention thus your time applied to charts and screen time. True or not, it’s a traders choice.
Besides patterns just jump out at you at times, so, trade what the market gives you... is what I say.
On lower portion of this chart we see the lower setup and price action that is very similar to the upper pattern. Only differences are the size of the pattern.
I still see it as a playable and still possible higher move in the pair.. after all strong momentum in between 2 levels of side ways price action says buyers in this case are still coming in as well as previous buyers are still holding on for more and not allowing price to come down much.
The pink lines define a sideways price action. I placed pink line just above the upper level of each of the ranges. As well as a lower one. If your looking to place a momentum trade as prices pushes up and over the upper pink line at some point in the near future, then place a order just above the pink line. I’d also set a stop just below the lower range pink line. Placing a stop is important because false breaks do happen. That’s one way to play this...
Another way is to place a order close to the smaller bottom pink line that is just below the bottom longer pink line. That line is at the 50 EMA moving average. Current price is above that price, however that EMA is often a point where price changes direction after it is challenged and then continues in the longer trends direction. Being that we are a few hours before the Asia markets open often there can be a sudden move due to low liquidity in the markets at that time of day. Should such a move happen we could capture a better long position price. Of course you’d set a stop appropriate to your own risk tolerances in either case or strategy.
Number 3 way is to set orders up on both points using smaller size to accommodate again for personal preferences, style of trade, and or account size. By placing multiple orders at different points in or around a targeted area The overall orders might give you a better average price. That and no one really knows where short term tops or bottoms are and so entry prices might get filled or might leave you on the sidelines as a spectator to a move you found to be a high probability—-that also then became reality!
Targets should as always should be at least 2 X your stop size.
If you decide to trade this idea or any idea the risk of loss is always yours. Because there is no sure thing in trading and trading is very risky, plan your trades and only then trade your plan.
In trading you either make dust or you eat dust.
All the best in your trades.
Besides patterns just jump out at you at times, so, trade what the market gives you... is what I say.
On lower portion of this chart we see the lower setup and price action that is very similar to the upper pattern. Only differences are the size of the pattern.
I still see it as a playable and still possible higher move in the pair.. after all strong momentum in between 2 levels of side ways price action says buyers in this case are still coming in as well as previous buyers are still holding on for more and not allowing price to come down much.
The pink lines define a sideways price action. I placed pink line just above the upper level of each of the ranges. As well as a lower one. If your looking to place a momentum trade as prices pushes up and over the upper pink line at some point in the near future, then place a order just above the pink line. I’d also set a stop just below the lower range pink line. Placing a stop is important because false breaks do happen. That’s one way to play this...
Another way is to place a order close to the smaller bottom pink line that is just below the bottom longer pink line. That line is at the 50 EMA moving average. Current price is above that price, however that EMA is often a point where price changes direction after it is challenged and then continues in the longer trends direction. Being that we are a few hours before the Asia markets open often there can be a sudden move due to low liquidity in the markets at that time of day. Should such a move happen we could capture a better long position price. Of course you’d set a stop appropriate to your own risk tolerances in either case or strategy.
Number 3 way is to set orders up on both points using smaller size to accommodate again for personal preferences, style of trade, and or account size. By placing multiple orders at different points in or around a targeted area The overall orders might give you a better average price. That and no one really knows where short term tops or bottoms are and so entry prices might get filled or might leave you on the sidelines as a spectator to a move you found to be a high probability—-that also then became reality!
Targets should as always should be at least 2 X your stop size.
If you decide to trade this idea or any idea the risk of loss is always yours. Because there is no sure thing in trading and trading is very risky, plan your trades and only then trade your plan.
In trading you either make dust or you eat dust.
All the best in your trades.
Comment
Trade completed over night while I slept., As I had mentioned in my setup post, and to recap some...
The first breakout order triggered first and off momentum’s push we took a small but fast +10 pips
Then price had a reversal only to go to the bottom of the sideways price range triggering the second order as well pushing farther to the 50EMA level triggering the 3rd order. Then the market buyers stepped back in as they had with the sideways price action over the corse of previous several hours. Again pushing price back up and into that gray top channel trend line. Buyers could not push through that area and hold it so profits were taken on both orders +23 and +27 fir a total of +60 pips off this repeating pattern small chart setup.
We are now all out of the trade. All of this setup and trade was done fir the most part over my night while I slept.
All the best everyone
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.