moneymaking

EURUSD: BEARISH PENNANT FORMATION ON 4 HR !!!

Short
FX:EURUSD   Euro / U.S. Dollar
Hello Traders,

Here we have a VALID BEARISH PENNANT formed on FX:EURUSD . This type of pattern is usually formed after a strong selloff, where after the strong bearish move, some sellers are taking profits while others are joining with the downside move. This eventually leads to a consolidation that is presented in the form of a BEARISH PENNANT. Do keep in mind that this is a CONTINUATION PATTERN and therefore we expect further downside move AFTER getting a valid breakout.

NOTE #1: If we get a break and close above 61.8% Fib level for XA leg, than that would be the 1st signal for this patterns invalidation. The 2nd or the main signal would be a break and close above the X point of the pennant . Also a break and close above 50 MA would add extra confirmation to the patterns invalidation.

NOTE #2: A breakout to the downside would be MORE favourable if we get a break and close below the 61.8% Fib level for BC leg. That would confirm a further expected downside move, potentially up to the target.

Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)

Comments

Hi guys, just wanted to be clear about where we can enter short in this trade setup, I have labelled 2 different types of options to enter in to this short trade, see the chart below:

+1 Reply
moneymaking moneymaking
The 1st option will have stop loss of about -150 pips, while the 2nd option will have stop loss of about -30 pips.
Reply
great thats very kind of you
+1 Reply
moneymaking manijeh.kazemi.33
Your welcome :)
Reply
UPDATE #3: Hello everyone, market has broken and closed below the 61.8% Fib level for the BC leg, we can sell on the retest of either the 61.8% level or on the retest of pennant's lower part :)
+1 Reply
hi SL?
Reply
moneymaking manijeh.kazemi.33
Hey mate, actually no. This was a short trade and I was waiting for breakout to the downside, instead we 1st got a false breakout to the upside. Falling into this trap was avoided by waiting for a close either above X point of the pennant or the 50 ma. We did get a close above the X point, so in a sense you can call this an invalid pennant pattern now. So our entry never got triggered because we never got the breakout to the downside until now. If you want you still can sell it on the retest of 61.8% or the pennant lower part. Hope this make sense, let me know if you any further questions. All the BEST :)
+1 Reply
THANK you very much I think so
+1 Reply
moneymaking manijeh.kazemi.33
No problem mate, anytime :)
Reply
UPDATE #5: Hey guys, unfortunately got stopped out on this setup. Focusing towards future trade setups :)
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