Reading the chart
The pair broke a midterm upchannel with a weak extension of 120.9% of X to A. This break of the upchannel sets my bias to short. Also, with a weak extension in mind I would expect a deep retracement back to X. This retracement should end at approx. 0.7189 with a confluence of the dynamic resistance of the current downchannel at approx. 0.7200.
Setup
entry: 0.7189
stoploss: 0.7284 (95 pips)
target 1: 0.7047 (1:1.49)
target 2: 0.6962 (2.39)
target 3: 0.6716 (4.98)
If the stoploss is too big, downsize you positions.
The pair broke a midterm upchannel with a weak extension of 120.9% of X to A. This break of the upchannel sets my bias to short. Also, with a weak extension in mind I would expect a deep retracement back to X. This retracement should end at approx. 0.7189 with a confluence of the dynamic resistance of the current downchannel at approx. 0.7200.
Setup
entry: 0.7189
stoploss: 0.7284 (95 pips)
target 1: 0.7047 (1:1.49)
target 2: 0.6962 (2.39)
target 3: 0.6716 (4.98)
If the stoploss is too big, downsize you positions.
Trade active
Comment:
A little bit too early to say, but it looks like this Day is forming a longlegged Doji at the end of an uptrend..
Putting all the pieces together so far:
- RSI (16H/daily) is telling us that the pair is oversold,
- 1H candlestick actions shows aversion towards the dynamic resistance,
- 4H shows a probe downwards, retesting the broken upchannel,
- As a result of that, it is possible that the 16H and daily candlestick will form a longlegged doji candlestick. This could be interpreted as another sign of possible reversal.
Putting all the pieces together so far:
- RSI (16H/daily) is telling us that the pair is oversold,
- 1H candlestick actions shows aversion towards the dynamic resistance,
- 4H shows a probe downwards, retesting the broken upchannel,
- As a result of that, it is possible that the 16H and daily candlestick will form a longlegged doji candlestick. This could be interpreted as another sign of possible reversal.
Trade closed: stop reached:
Lossed the shark886. All 3 positions are cleared.
However, I went short with the alternative Shark at 1.113% extension. Unfortunately i didnt had the time to post this new setup. I will post it later this week..
However, I went short with the alternative Shark at 1.113% extension. Unfortunately i didnt had the time to post this new setup. I will post it later this week..
Comment:
The only indicator which gives me a little clue is the RSI on the daily timeframe: this pair is heavily overbought. Shaping the context with the dynamic resistance, this could be the beginning of a new story: can the bears take over control?