So I am fairly new to forex trading, and technicial analysis in general. Here I spot what I call a sloppy AB:CD pattern forming. I call it sloppy because the BC move is not exactly a .618 retracement of the AB move. If I were actively trading, I'd go long to ride the CD leg up to pattern completion then turn around and short the pair.
From what I see, we found some resistance at 1.14310, pulled back to find support at 1.14180, then broke through the resistance and found new resistance level at 1.14450. Previous resistance turned support, and I am thinking that this is a good time to get long with targets at 1.14882 and a stop losss at 1.14182. This gives us a nice risk reward ratio, and stops are at previous structure support. If we break through support at 1.14300 then our trade is invalidated and our stop will minimize our losses.
What do you think of this? Agree or disagree?
From what I see, we found some resistance at 1.14310, pulled back to find support at 1.14180, then broke through the resistance and found new resistance level at 1.14450. Previous resistance turned support, and I am thinking that this is a good time to get long with targets at 1.14882 and a stop losss at 1.14182. This gives us a nice risk reward ratio, and stops are at previous structure support. If we break through support at 1.14300 then our trade is invalidated and our stop will minimize our losses.
What do you think of this? Agree or disagree?
Comment:
Ok, where the BC stock symbol is at just read AB:CD instead :)
Trade closed: stop reached:
Looks like a swing and a miss on this trade idea. Price action would have stopped this trade out for a loss.