Hey guys, i want to share one of my today's favorite setups, which is on CADJPY. The chart explains everything but basically i've found several clues that all point in the same direction, namely long. It's important you know i don't even start building a case for entry without structure; here we have higher timeframe structure and trading timeframe structure at the same level, that happens to be also a psychological number. Besides, there's a Bat pattern completing right at that level and a AB=CD pattern already completed. With all those reasons together i know i want to be on the long side of the market. But i'm waiting an additional and definitive clue in price action that can trigger my order, being a candlestick formation or a double bottom. If you are a pattern trader you can take this as a simple Bat formation, i think this is a very good place to buy. Good luck!
If you want to share your standpoint or even ask questions, feel free to comment below. Otherwise, see you in the next chart!
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i'm waiting for a double bottom:
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If the current candle will close engulfing, then it would be the buy signal. In this case i'd wait for a small pullback and then buy:
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Since it didn't close engulfing, i would wait for a break of structure on 1hr chart in order to buy the 618 retracement:
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Here we go, 2618 ready to be filled:
Order cancelled
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Unfortunately we didn't have the engulfing for few pips. Price after breaking to the upside never retraced for a 2618, now the first hypotetical target has been hit. I was right, but i didn't have a chance to involve myself in the market. Hope you guys were able to earn some profit!
Hey @Telson, really appreciate your feedback. Thanks!
SonerB
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A pin bar already generated in 1H timeframe ? or you would wait confirmation in longer time frame ?
Roker1
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Hey @SonerB, a pinbar on the hourly chart is enough (if followed by a reverse candle), but i'd like to see it at a lower price, at the moment price is too high for me in order to get a nice risk to reward ratio. Thanks for the comment!