EUR/GBP: Long from the trendline, short if we break it...
This is based on an idea from another Tradingview member: www.tradingview.com/u/2sexy/ (idea linked below).
I never base my trades on other members before confirming it by my own! So therefor this idea, make sure you also like the idea from 2sexy though if you like mine!
It's a simple 'bounce off the trendline' trade with a possible nice long move to follow (up to the upper trendline). There is also a S/R zone at my level of entry. Harmonics (see red lines and rectangles) suggest that we didn't quite reach the D of a possible AB=CD move yet. This D would end at my entry point also (more confluence), but please note that in that case the timeframe of the moves don't correspond (see red rectangles) and we didn't retrace to the 38.2 level of the impulse move(s)! It is therefor possible that we will make a third wave further down... So I'm trading with caution and adjusting my position size accordingly!
I put 5 possible trades in the chart, I would probably take a small portion at TP1 (20%), up to 50% at TP2 (38.2 retracement) and divide the remaining 30% over the last 3 targets. I like taking profits at different stages, good for moral if you actually bank some profits along the way, I hate the term 'unrealized profit'... ;-)
I am still deciding on the SL, I kinda hate the fact that the 0.7300 round level is below what I would normally take as SL but the R/R on the first trade sucks if I go below 0.7300... On the other hand, if we break that trendline and close below with a 4H or 1D candle than we will probably continue further down so setting SL wider doesn't make alot of sense anyway. Not putting it too tight either since a spike can always take it out easily without actually a confirmed break of the trendline...
A short trade setup will follow in case we break and close below that lower trendline on the daily chart.
I couldn't help marking the head-and-shouders pattern on the chart, very nice example of one I think!
I never base my trades on other members before confirming it by my own! So therefor this idea, make sure you also like the idea from 2sexy though if you like mine!
It's a simple 'bounce off the trendline' trade with a possible nice long move to follow (up to the upper trendline). There is also a S/R zone at my level of entry. Harmonics (see red lines and rectangles) suggest that we didn't quite reach the D of a possible AB=CD move yet. This D would end at my entry point also (more confluence), but please note that in that case the timeframe of the moves don't correspond (see red rectangles) and we didn't retrace to the 38.2 level of the impulse move(s)! It is therefor possible that we will make a third wave further down... So I'm trading with caution and adjusting my position size accordingly!
I put 5 possible trades in the chart, I would probably take a small portion at TP1 (20%), up to 50% at TP2 (38.2 retracement) and divide the remaining 30% over the last 3 targets. I like taking profits at different stages, good for moral if you actually bank some profits along the way, I hate the term 'unrealized profit'... ;-)
I am still deciding on the SL, I kinda hate the fact that the 0.7300 round level is below what I would normally take as SL but the R/R on the first trade sucks if I go below 0.7300... On the other hand, if we break that trendline and close below with a 4H or 1D candle than we will probably continue further down so setting SL wider doesn't make alot of sense anyway. Not putting it too tight either since a spike can always take it out easily without actually a confirmed break of the trendline...
A short trade setup will follow in case we break and close below that lower trendline on the daily chart.
I couldn't help marking the head-and-shouders pattern on the chart, very nice example of one I think!
Trade closed: stop reached
