EURUSD [1-3 days view]

This trade was triggered earlier this week. However, I chose not to publish it as it was a low probability trade for me at that time for the following reasons:

• Market was only testing the ascending trendline support (now resistance)
  
• Normally I would wait for a pullback to retest the trendline before entering to short
  
• Market was also forming a Head & Shoulders reversal pattern however at trade time, it was still not confirmed.
  

I choose to publish this trade now because I believe it presents a very strong case of how a trade can really move in your direction when multiple technical elements show confluence to provide that confirmation despite the low conviction I had.

1. Market was forming a Head & Shoulders reversal pattern
2. Market broke below the ascending trendline support (now resistance).
3. At the same time, market also had one candle close just below the EMA (13). This EMA as noted in the past provided quite a good support/resistance where price reacted above and below it.
4. MACD momentum indicator at trade execution crossed below 0% and entered bearish territory. The MACD and signal line also showed strong downwards momentum.
5. Everytime price broke below an ascending trendline support (turned resistance), market will make a strong and sustained downwards push. This happened at the 2nd week of Jan 2019 and once more at the start of Feb 2019. Now at the start of March 2019, we see this pattern repeated again.

This is a quite a beautiful example of how technical analysis can be a very powerful skill to have for any market participant. Reach out to me to find out more!

Comment:

Trade is risk free with profits locked in. Will probably be able to scale in on any pullbacks.

Trade closed: target reached:

Target reached. This is a great example of how TA helps traders and investors in understanding market directional movements.

+157.5 pips (+1.39%)