1. PIN BAR: Although not found at the top of the deliberation pattern, the length of the tail and the fact it failed to close above the (resistance) trend line indicates a bearish bias.
2. DELIBERATION PATTERN: Typically a reliable pattern if the third bull candles wick is longer than the previous two, however confirmation is required as the wicks aren't A typical - Bodies have progressively closed shorter in size relative to the previous candles close so the bearish bias is still in play.
NOTE: Awaiting close of this weeks candle (bear candle preferred) below 61.8 Fib level before an entry can be considered.
Anticipated Target: 1.35493
Comments
SteveTobin
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Hi, i decided that lower resistance level was the kneck line of an inverse head and shoulders pattern what do you think?
UnknownUnicorn207683
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Glad you mentioned it!
Definitely an inverse H&S found on the daily chart however,
H&S pattern is positioned near the monthly resistance level of 1.39908, so I'm expecting this pair
to hit this resistance level first before continuing its downtrend.
DAILY CHART
Typically, an inverse H&S pattern has 3 white bull candles (roughly equal size to the previous candle) upon breaking the neckline, this pattern has 2 bull candles
with a pin bar found on the third bull candles close. Hope that helps!
UnknownUnicorn207683
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Apologies, here the updated version of the chart. (ignore previous chart)