Bearish Indicators 1. Deliberation pattern (Bull candle bodies decrease in size each day) 2. Doji found below 1.14200 3. Hanging man candlestick below 1.14200 4. Price has previously bounced off 1.14200 & 1.14650 5. Chart displays a rising wedge-like pattern (evident by trendlines & blue circles)
Risk Management Risk/Reward - 1:3.40 Stop Zone - 1.1510 (or just above 15th October 2015 high) Target Zone - 1.08700 or evidence of reversal
Note: A rising wedge like this, tends to see price return to the base of the wedge.
Comment
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4 Hour Chart showing strong bullish indicators. Trade closed at a small loss.
Comments
waterman
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Better be in sideline now FOMC minutes will triger a plunge in dollar
UnknownUnicorn410332
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Agreed. Best options is to wait for the next setup.
00Luis
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Did you close? Can you explain me why? I'd appreciate it very much.
UnknownUnicorn410332
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4 hour chart shows bullish momentum. Low test candle + three inside up pattern rejecting 1.13400 + low test candle bouncing off the 50 EMA.
Based on this, it's a clear buy signal based on our strategy - This was caused the trade to be closed early at a small loss.
Hope that helps
00Luis
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Excellent explanation. Thank you very much.
UnknownUnicorn410332
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No problem. Just to clarify, the analysis indicates a buy signal, however we're not in this trade.