We can trade this pattern long term also (the entry on D1 chart). Happy trading.
Comments
riskmode
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What is your trigger to enter this trade? Do you just place a sell limit order?
FullTimeTrader
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Hello, yes, we must place a limit order and SL some pips above the high. But i see not all the harmonic patterns work. I prefer patterns around strong levels of S/R and round numbers (here is 1.95). We see also the pair was overextended and needed some retracement. So we must make an overall analisis and not just trade every pattern that appears....
riskmode
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If you are selling with limit order then there is no high to place your SL above initially. Do you just have no stop loss initially?
FullTimeTrader
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The SL is above the resistance area (in this case 1.9500). Thats why i prefer this patterns around strong levels of S/R because the price tend to respect them. Whe must always put a SL.
riskmode
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It looks like your SL is 100 pips above 1.95. That seems like a long way. How did you decide this?
FullTimeTrader
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You are right, i never trade directly on W1 chart, as i wrote on the idea, we can pinpoint the entry on D1 chart. There is a clear candle pattern there.....
riskmode
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is the candle pattern you are referring to the ending diagonal/3 drive pattern?
FullTimeTrader
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Yes, there is and ending diagonal and MORE precisely near 1.9500 an engulfing bearish candle, double divergence on MACD at a strong resistance (i call this setup LST from Vladimir Ribakov)