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So what I can see on the 4H timeframe of the EURUSD is a POSSIBLE head and shoulders pattern, a reversal pattern if you have not seen it before. If price breaks the neckline, I would wait for a retracement back to the neckline for a potential short trade.
Entry point would be at the break and retest of the neckline. If the candle does not print a bearish candle or show any signs of rejection from that level, entry would not be recommended. stop losses would be 10 pips above the right shoulder. As this is a reversal pattern, you can choose to trail your stop losses above a Lower High to lock in more profits.
Current Risk to Rewards Ratio is 1:3.39 which is very optimal, however, do take note that not all trades will be winning trades. Remember to always only risk a maximum of 2% of your account if you want to stay in the game for long.
If you have success with this analysis, please do leave a comment to let me know.
Have a great week trading.
This is not financial advice nor am I asking you to do what I say. This is merely my ideas and technical analysis that I would be following per my strategy. If you want to find out more, do drop a comment. Cheers.
So what I can see on the 4H timeframe of the EURUSD is a POSSIBLE head and shoulders pattern, a reversal pattern if you have not seen it before. If price breaks the neckline, I would wait for a retracement back to the neckline for a potential short trade.
Entry point would be at the break and retest of the neckline. If the candle does not print a bearish candle or show any signs of rejection from that level, entry would not be recommended. stop losses would be 10 pips above the right shoulder. As this is a reversal pattern, you can choose to trail your stop losses above a Lower High to lock in more profits.
Current Risk to Rewards Ratio is 1:3.39 which is very optimal, however, do take note that not all trades will be winning trades. Remember to always only risk a maximum of 2% of your account if you want to stay in the game for long.
If you have success with this analysis, please do leave a comment to let me know.
Have a great week trading.
This is not financial advice nor am I asking you to do what I say. This is merely my ideas and technical analysis that I would be following per my strategy. If you want to find out more, do drop a comment. Cheers.
Trade active:
Trade is currently active and running in profits
Trade closed: target reached:
Can close your trade if you are happy with the profits