Hey, traders. Last week I posted this Bat pattern trade. As you see the bat has a double top form by A and C points. This means that a violation of B-point (the lowest point between these highs) gives us a trend reversal sign. In this case I don't look for an uptrend continuation but reverse my whole view of the market 180 degrees. Now I'm looking to short gbpusd as soon as priceaction hits 0,618 of the whole downward move. This point coinsides exactly with my bat pattern target. So, I am to sell one unit to close my long position and then immediately sell another unit to initiate my short trade. Stop loss is above A and target is at the lowest close of the NSL. Check the related idea link to see how the bat trade uncovered itself. Press like if you find the information useful. Subscribe to get my analisys beforehand. Check other related ideas links to see how these setups work
Nice move, would you wait for a confirmed reversal? Move up is very sharp...
Alexander_Nikitin
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NSL is a confirmation by itself. If were not waiting for confirmation I would have sold the double top. So I just enter at 0,618 correction after I had a confirmation of reversal))
Nicemate
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If one entered this trade higher, around the 0.764 retracement level, can the stop be positioned over that level ( 2.07480), or is it always better to position the stop loss above A ?
Alexander_Nikitin
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Above A no matter what))
Nicemate
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You are right, the rules are the rules !
Alexander_Nikitin
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By the way, isn't 2.0748 above A? I think it is)
Nicemate
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I am pretty sure now that the downtrend on the GBPUSD pair has been violated and will reverse, as it has broken the 1.5478 level on the upside !!!
Are these correlated and will the same necessarily happen to GBPCAD ? : (
Nicemate
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Is this due to the strong data coming from the UK ?
Alexander_Nikitin
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No. Gbpusd has a NSH, yeah. I already placed buying limits if it retraces to 0,618. Will stay long with gbpcad untill the market stops me. Correlation surely exists but sometimes pairs move opposite directions.