As expected the bears tested all of the fib extensions of the butterfly. I also expected the bulls would start to kick in at the predefined zone of 1.9383 - 1.9363. Price even pinched lower to 1.9293 to trigger the bat entries. Unfortunately I didn't see the bullish bat, but that price alignment really gave the bulls a good risk:reward ratio.
Now I'm both long and short with the GBPAUD. I took partial profit at 1.9363 and closed two short positions. At the same time I entered long with the butterfly. I expect the bulls will drive up the price because of the following:
(1) price went down extreme, but eventually a lot of buyers stepped in producing a very large wick.
(2) there was no strong follow up after that candlestick. this tells me that the bears are still there.
(3) The bears have tried to counter the previous candlestick. But if you look closely, initally they failed.
Now I have a bearish cypher pattern on my radar which lines up with my desired selling zone to scale in short.
Now I'm both long and short with the GBPAUD. I took partial profit at 1.9363 and closed two short positions. At the same time I entered long with the butterfly. I expect the bulls will drive up the price because of the following:
(1) price went down extreme, but eventually a lot of buyers stepped in producing a very large wick.
(2) there was no strong follow up after that candlestick. this tells me that the bears are still there.
(3) The bears have tried to counter the previous candlestick. But if you look closely, initally they failed.
Now I have a bearish cypher pattern on my radar which lines up with my desired selling zone to scale in short.
