DLavrov

EURUSD Double Top

Short
FX:EURUSD   Euro / U.S. Dollar
If we look at the 4H chart of EURUSD, we can see a double top chart pattern. It's a trend reversal pattern at 1.14500 resistance level. We have short opportunity and we must think about entry levels. Based on rules for trading double top chart patterns, we must sell below the local swing low which is between 2 swing highs. Short trades should be opened below 1.13100 level. But as you can see we have the uptrend line and the support level near our entry level. It means that price can bounce from this zone and moves up. That's why we shoul have other variants for better entry. The uptrend line 1 can be used for getting a sell signal too. If price breaks this line, we'll open short trades with stop orders higher than 1.14500 resistance level. Profit target can be at the uptrend line 2. Also if price breaks the uptrend line 2 and then 1.12700 support level, we'll have one more short opportunity. Sell below 1.12700 level with stop orders higher than 1.13000 level and profit targets at 1.12000 and 1.11200 support levels.

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