Not sure if the retracement from the high earlier this week is over yet, but as the move is slowing down I am currently looking for some short-term longs. I think I managed to identify 2 possible bat patterns which could act as possible entry points for long positions. If I'm not quite right in the way I drew these patterns then hopefully someone will point that out to me...
I was in a long position from 1.362 earlier today because I had a gap in my MT4 charts (anyone else had that?? I use IG Markets data feed), so I thought I'd fill that (gap filled at 1.1278 on my charts)! Closed the position in the meantime because I didn't have any reason to keep a long just yet...
But now I may have my reason, these bats...!
I am currently planning on acting only when the largest (pink) bat gets filled because I want to place my stops below the low around 1.1014 (putting it below the 1.1000 level alltogether!). The smaller (yellow) bat doesn't give me good enough odds when I place my stop that low and putting it below the yellow X is risky in my opinion... If I don't get filled, well then the risk is zero anyway...
I'm currently also looking at a potential bullish pattern forming on the daily, very early stage though (possible completion of B which could confirm the "up" direction when going from B to C). I must say I am also still thinking of that 38.2 fib level around 1.1800 to be tested, but that's probably a subjective thought, and we're getting quite far from that high now..., especially with the large bear flag on the weekly which could also unfold quite soon (within the next week maybe if we don't go up soon...)!
Looking for more confirmation now, should have some time whilst PA is consolidating...
Any idea's insights, criticism always welcome!
Comments
KVE
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TP1 hit! On to TP2 @ 1.1380 I hope...
KVE
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First bat stopped out @ BE,
Filled today on completion of the second bat @ 1.1100, since I'm not overconfident with the direction anymore SL is now very tight @ 1.1080 (has been a pivot point for some time now)...
I'm 60 pips up now, let's hope it sets through...
KVE
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70 pips up, SL already @ BE, no more risk for me on this one... :-)
KVE
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Entering additional buy limit at completion of smaller bat, will monitor closely:
KVE
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SL is above BE for this trade of the small bat, hoping we get to 1.1395 now...
KVE
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Added a trendline based on the 4H charts. This actually is close to the completion point of the smaller (yellow) bat. If I take this into consideration, completion of the larger (pink) bat would be breaking the current trend... Food for thought... I will be watching PA closely when (or if) it gets to that D point of the smaller bat and the trendline to see if I can keep my buy limits in place or not!
I could have acted on that idea but chose not to since the important 1.1000 level was to close imo.
My entry point was chosen with that in mind, i.e. exactly at the X leg of that yellow bat (around 1.1100), in such a way that if that bat gets filled and PA drops below that yellow X point, SL would be initiated on the yellow bat whilst I would still be safe since my SL on the pink bat is below that 1.1000 level...
The SL is still quite far and R/R on my TP1 is not extremely well but application of good money management still makes it a good setup for me.
I have placed 3 buy limits, 1 for each target, I'm using 50% of my usual lot size for money management purposes and will take 40% at TP1 and TP2 and the remaining 20% at TP3 (or will let ir ride if PA tells me so...).
I am still looking for confirmation and could cancel my buy limits whenever PA tells me to...