This pair has been trading in a range between a support and resistance zone for the last couple of weeks. PA recently broke out of a triangle but was stopped by resistance above (possible ascending triangle boundary).
There is also a possible "up" channel in play which could be broken to the downside soon (also the ascending triangle trendline). The question is which of these simple patterns will be the strongest and if a break will be true or false...
Possible advanced patterns can be drawn allthough they're not perfect patterns according to the rules of these advanced patterns! Something between a bat and a shark can be drawn (A en C are almost at the same position forming actually a double top (bearish sign below the baseline), between 0.886 and 1.13 therefor the bat/shark hybrid... :-) ). PA has just surpassed B, but I only use this pattern for reference, the trade is mostly based on the range, fibonacci and S/R levels!!
BE AWARE OF THE FACT THAT THIS PATTERN IS NOT STRICTLY A PATTERN ACCORDING TO ADVANCED PATTERN RULES!! IF YOUR RULES TELL YOU NOT TO TRADE OFF OF INCOMPLETE PATTERNS THEN DON'T!
If we break the regular triangle and surpass the "up" channel boundary I'm hoping to see a bounce from the support zone below or possibly the advanced pattern. My entry will be at the upper boundary of the support zone, SL below completion of a possible 1.13 sharklike pattern, targets based on fibonacci and the upper range boundary.
Please note that the break of the "up" channel to the downside also means breaking the possible ascending triangle and is thus a bearish sign! So this trade might not be suited for more risk-averse traders!
A break below that lower support zone would trigger me to go short after a re-test of that support zone turning resistance!
There is also a possible "up" channel in play which could be broken to the downside soon (also the ascending triangle trendline). The question is which of these simple patterns will be the strongest and if a break will be true or false...
Possible advanced patterns can be drawn allthough they're not perfect patterns according to the rules of these advanced patterns! Something between a bat and a shark can be drawn (A en C are almost at the same position forming actually a double top (bearish sign below the baseline), between 0.886 and 1.13 therefor the bat/shark hybrid... :-) ). PA has just surpassed B, but I only use this pattern for reference, the trade is mostly based on the range, fibonacci and S/R levels!!
BE AWARE OF THE FACT THAT THIS PATTERN IS NOT STRICTLY A PATTERN ACCORDING TO ADVANCED PATTERN RULES!! IF YOUR RULES TELL YOU NOT TO TRADE OFF OF INCOMPLETE PATTERNS THEN DON'T!
If we break the regular triangle and surpass the "up" channel boundary I'm hoping to see a bounce from the support zone below or possibly the advanced pattern. My entry will be at the upper boundary of the support zone, SL below completion of a possible 1.13 sharklike pattern, targets based on fibonacci and the upper range boundary.
Please note that the break of the "up" channel to the downside also means breaking the possible ascending triangle and is thus a bearish sign! So this trade might not be suited for more risk-averse traders!
A break below that lower support zone would trigger me to go short after a re-test of that support zone turning resistance!
