We can see price break market structure in the higher time frame switching to a bullish structure. Reasons for entering the trade here are as follows:
Aggressive entry:
1. Break and re-test of descending trend line in higher time frame.
2. 3rd touch on ascending trend line on H4 (I used H1 for a more clear picture). The two trend lines intersect at the point of re-test giving more confluence.
Conservative entry:
1. Inverse head and shoulders pattern on H4 as additional confluence. Wait for price to re-test the neckline and price action confirmation on M30 or H1 that the re-test is valid and enter your trade.
For targets and stop loss, place your stop loss below the zone containing the neckline as in the chart. For take profit, when price reaches each zone highlighted, take profit and allow 1 trade to run the full range of the inverse head & shoulders pattern provided that price allows.
p.s: I'll keep a close eye on the ascending trend line, a valid break and re-test of the trend line is the first warning for invalidation. The second warning would be a re-test of the market structure created by the break and re-test. I will update the idea as needed.
Aggressive entry:
1. Break and re-test of descending trend line in higher time frame.
2. 3rd touch on ascending trend line on H4 (I used H1 for a more clear picture). The two trend lines intersect at the point of re-test giving more confluence.
Conservative entry:
1. Inverse head and shoulders pattern on H4 as additional confluence. Wait for price to re-test the neckline and price action confirmation on M30 or H1 that the re-test is valid and enter your trade.
For targets and stop loss, place your stop loss below the zone containing the neckline as in the chart. For take profit, when price reaches each zone highlighted, take profit and allow 1 trade to run the full range of the inverse head & shoulders pattern provided that price allows.
p.s: I'll keep a close eye on the ascending trend line, a valid break and re-test of the trend line is the first warning for invalidation. The second warning would be a re-test of the market structure created by the break and re-test. I will update the idea as needed.
Comment:
Both entries now well in profit. I’ve taken 50% of my position off and placed stops for the runner trades at break even.