If the pair bounces off of the bearish trend line
we will be looking to sell. Ideally I want to see one more push higher, reaching the trend line
and creating a false break. Next step would be a breakout below the up trend line
(dotted green line) and most recent low. Once that happens I will be looking for a re-test of broken TL and correction before entering a sell trade.
The potential risk:reward ratio here could be amazing as we can get just a few pips of stop loss while the potential target would be hundreds of points. Depending on the entry we can catch a trade with 1:7/8 or even 10 risk:reward ratio.
Stop Loss – set the stop loss above last high.
Final Target – lower band of the triangle.