Hey guys, this analysis may come too late, for this setup met my rules for entry at the previous close, but i want to share it anyway because maybe the price will come back to retest the entry zone. And there i will be waiting for my orders to be filled. Price is testing a daily resistance zone (blue box) and it's already OVERBOUGHT, that's when i start to look for trading opportunities down on 4hr and 1hr charts. This time we put an engulfing kicker on the 4hr chart. If you follow me you would remember one or two shorts on this pair last week, i got stopped out both times. But keep in mind, the last trade doesn't change your overall edge on the market. Don't be affected by the last trades' results. My order will be placed at 1,0061s Stops and targets as in the chart above.
If you have any question or remark feel free to write it below. Otherwise, see you in the next chart.
Comment
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Most conservative traders could wait for the break of the double top's neckline and then short the retracement:
Trade closed: target reached
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First target hit! Move your stop to breakeven
Trade closed: target reached
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Second target hit! Roughly +210 pips for this trade