On the daily chart I already have one solid confirmation that there's a reversal happening right in front of our eyes. The pair has broken out of its downtrend as we can see on the chat after find support at the $1.0880 level. It has already retested the broken TL and price failed to close back below the TL. Now that we had a run up to the psychological level of $1.1180 we're seeing a retracement. This is where our potential second confirmation coming into play- an inverse H & S is a brewing! The pattern is significant as it usually forms after a downtrend and signals a reversal is on the horizon.
We have 2 ways to play this pure technical set up:
1. We can wait for price to get to the support area right in the 1.1030-1.1006 zone and build our long position. If price bounces from this support zone, it means the right should of the inverse H & S pattern is in the making. OR
2. We can wait for the inverse H & S to complete its cycle. We would wait for a break and retest of the neckline right at around $1.1180 to build long position.
If we get the momentum on the breakout we could see a rally ALL the way to $1.1410, our target works out to be the exact calculation of the head to the neckline! How coincidental?!
Though this is a pure technical set up remember to be mindful of the fundamentals which can totally invalidate this trade idea.
Here's my plan-
Areas of Interest to Build Long Position:
$1.1030-Somewhat aggressive entry
$1.1015-1.1006-Conservative (Ideal)
Stop Loss:
100 Points
Target:
$1.1410
This is a high probability set up with a R/R Ration of 1:4. That's a WAOW!!
Good luck and Happy Trading!
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We have 2 ways to play this pure technical set up:
1. We can wait for price to get to the support area right in the 1.1030-1.1006 zone and build our long position. If price bounces from this support zone, it means the right should of the inverse H & S pattern is in the making. OR
2. We can wait for the inverse H & S to complete its cycle. We would wait for a break and retest of the neckline right at around $1.1180 to build long position.
If we get the momentum on the breakout we could see a rally ALL the way to $1.1410, our target works out to be the exact calculation of the head to the neckline! How coincidental?!
Though this is a pure technical set up remember to be mindful of the fundamentals which can totally invalidate this trade idea.
Here's my plan-
Areas of Interest to Build Long Position:
$1.1030-Somewhat aggressive entry
$1.1015-1.1006-Conservative (Ideal)
Stop Loss:
100 Points
Target:
$1.1410
This is a high probability set up with a R/R Ration of 1:4. That's a WAOW!!
Good luck and Happy Trading!
Like, Comment, and Share.
Trade active:
After almost what felt like a decade (JK). Buy order triggered at 1.1030.
Trade closed manually:
I took profit a bit earlier than planned to reassess this pair.