Finding an opportunity The pair tried to make a lower low after it retraced at least 61.8% from X to A. But it failed. Instead, it stalled after 61.8% of A to B which can be marked as point C. Now price went almost non-stop up north.. Extreme?
Ealier this week, I was looking for a short opportunity after the bigger plunge earlier this week. Now with the extreme price action going up (which should be a characteristic of an extreme pattern like the crab) and RSI(7) oversold, this could indicate that the fast retracement went exhausted very quickly. If you consolidate the chart and look to the left, you can see that the PRZ also matches prices higher low. Can this give the PRZ more potential? Who knows
Setup Entry: 0.7736 (PRZ 0.7736 - 0.7757) Stoploss: 0.7760 (-23 pips. Although this is a very tight stop you could play it more safe and take a bigger stop without a negative win:loss ratio) Target 1: 0.7703 (1:1.4) Target 2: 0.7683 (1:2.29, if the retracement isn't over yet, this could be a 2618 level for going long) Target 3: 0.7624 (downsize/leverage positions if total risk is too much) Target 4: 0.7541 (beginning of the PRZ of a big butterfly long)
Trade closed: target reached
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target 1 and target 2 are hit. Moved stop&loss to breakeven,