Background: - In the overall picture, price is forming a boardening pattern and a possible H&S formation - Left wide shoulder is formed and right shoulder should be forming? - This trade is enter to trade the forming of the H&S right shoulder - In recent price action, couple of interesting price action pattern formed at this broadening pattern support: 1.) Morning star with a gap up 2.) Bullish hammer failing to close the gap 3.) Bullish divergence
Entry: - Buy stop of 15pips higher than the hammer's high @ 0.8582
TP: - Left shoulder's bull run is about 380pips from the low - As such i have set a discounted range of 300 pips from the low, near the 50MA @ 0.877
SL: - Set at the low of the gap @ 0.848
Order cancelled
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Updates - 1 December 2016: - Yesterday candle closed the gap with a very bearish momentum - As such, this invalidate my set up and i will cancel my buy stop. - Might reenter this set up if price action shows another set up at this area