EUR/USD - Inverse H&S - Trade the break up
EUR/USD pair has shown a significant weakness in the past 2 weeks and it looks like it found its bottom, especially when looking on the daily chart:
1. RSI in the oversold region
2. The daily candle looks like a dragonfly doji.
3. STCH oversold and looks like the early buy signal is given.
Furthermore, looking at the hourly chart we can see that the price action is forming an inverse head and shoulder pattern, which again means a trend reversal. The downtrend has been broken as well.
The idea is to trade the break of the neckline with SL below the second shoulder and TP based on the M.P.O projection. For further confirmation, I am going to apply a 1h candle time filter.
1. RSI in the oversold region
2. The daily candle looks like a dragonfly doji.
3. STCH oversold and looks like the early buy signal is given.
Furthermore, looking at the hourly chart we can see that the price action is forming an inverse head and shoulder pattern, which again means a trend reversal. The downtrend has been broken as well.
The idea is to trade the break of the neckline with SL below the second shoulder and TP based on the M.P.O projection. For further confirmation, I am going to apply a 1h candle time filter.
Note
As expected price has reached the neckline, but for further confirmation the trigger is a close of 1 hour candle above the neckline.Trade active
Trade closed: target reached
TP level reached. Thanks to all who like and followed this idea!
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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.
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.