FullTimeTrader
Long

EURGBP-D1-Potential bullish shark at key area

FX:EURGBP   Euro Fx/British Pound
1483 14 37
a year ago
The EUR is still weak and not ready for a rally against other pairs. We could expect a slow further decline, if this happens this pair could give us a good setup for a long entry at a key level.

At W1 chart we have:
- potential inverse head and shoulders pattern
- first convergence (higher high) confirmed by oscillator
- strond psycho number 0.7000

snapshot

Here on D1 chart:

- Previous ending diagonal suggest this pair already bottomed
- Perfect bullish shark
- EW wave B (see below)

snapshot

I will place buy limit orders near 0.7000.
SL and targets shown on chart.

Best regards.

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a year ago
Comment: First target hit, moving sl to be
a year ago
Comment: second target hit
KVE PRO
a year ago
Nice, looks like a great setup! I will adjust my last target on my short based on this and try to enter long now!

My short:
EUR/GBP: Short from broken trendline
Reply
FullTimeTrader KVE
a year ago
Good entry!!, now you can look for longs using this setup. May be we have to wait some days because we could have some consolidation before a rally. Regards.
Reply
KVE PRO FullTimeTrader
a year ago
I find the shark pattern a bit difficult to get a good entry. I was wondering: do you use the 5-0 pattern rules from the Scott Carney book to get your C point? Or is there newer literature available specifically for the shark pattern?

I have found sources with different rules, for instance one stating that it should be entered at 0.886 with stops below 1.13 which gives crappy R/R...
Yours is much better but I'm a bit worried about a 1.13 0X extension for the shark C completion point.

We do have good support however as you stated from the 0.7000 level and possible H&S (which could mean we missed our entry point seeing the recent pullback...), possibly also from a monthly "up" trendline a bit lower down imo and maybe even from a Quasimodo pattern (11 March low acting as Quasimodo support).

Taking all that into consideration I think your entry is possibly the best compromise!

As for targets, based on a 5-0 I'm aiming for the 50% ret. of BC, in case Quasimodo acts and we don't go below the most recent low we could see an ext. much further up, possibly to 0.7600 where an AB=CD pattern might end. Purely hypothetical of course... ;-)

This is what I have so far, I might put my first entry a bit higher above the 0.7000 as yours is, I might have to give it a nights sleep...:
snapshot
Reply
FullTimeTrader KVE
a year ago
Hello, i trade harmonic patterns in confluence with elliot waves. This way gives me more specific stop loss and targets. Right now i dont trade the 5-0 pattern, i found another way of trading similar structures using EW.
Talking about the shark please refer to my EW count i show above. I place the SL some pips below 0.6927 because if this happens the EW count is invalid and the shark has more probabilities to fail. I agree the 1.13 fib extension is too far. The SL some pips below 0.6927 is better.
For targets, as you can see on my EW count i expect a possible ABC pattern forming here, so the long term targets are above 0.7500. I just place three targets to take partial profits on the way and be more conservative.
Regards.

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KVE PRO FullTimeTrader
a year ago
Tnx alot for your reply! EW is next on my list to learn!
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BLKS
a year ago
Agree, an ab=cd is forming as well and target to completed at 0.70000 then will start rise.
It might also rise to 0.79300 due to a potential bat is forming as well in daily chart. :)
Reply
johan.verm
a year ago
Hello; I'm not so good in patterns but must the last ending point not be beneath/under the startingpoint to be a shark?Otherwise great job..Greetings ,Johan
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FullTimeTrader johan.verm
a year ago
The last point could be in the range 0.8860 - 1.13. This time i prefer the 0.700 because its the 0.8860 fib and round number 0.7000 is a reaction level. Im using also my Elliot Wave count to choose a more specific entry point. Regards.
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johan.verm FullTimeTrader
a year ago
Thanks.Have a nice tradingday..
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FullTimeTrader
a year ago
Adjusted levels for targets:
snapshot
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dinesh26 FullTimeTrader
a year ago
Can I still get in on this trade? or is it not worth the R/R at this point? you have great analysis btw! keep up the great work.
Thank you.
Reply
BLKS
a year ago
EURGBP are going to rise!!!
work great
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FullTimeTrader BLKS
a year ago
Yes!, at that time was difficult to think the EUR will recover. Regards.
Reply
BLKS FullTimeTrader
a year ago
ya, gbp is falling as well.
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