I’ve entered a sell position on this pair and plan to scale in if the price moves higher. My first entry is 1.12354.
I don’t believe the move will be as large as my usual trades but I feel it’s a decent setup for a short trade.
The price is continuing to move within the confines of an ascending triangle, this in itself usually results in a high probability of a bearish correction. There is also moderate divergence between the movements of price and the indicators shown which indicates potential weakening in price.
Further supporting my entry is the delta calculation. The delta shows an increase in buy orders but the price is unable to make higher highs. This is know as hidden divergence which shows that the market buy orders are being consistently absorbed to the point that the price is unable to make higher highs. I’m expecting the price to potentially move higher into the previous resistance zone highlighted by the green box. I will be scaling in positions if the price continues to move higher and will update when There’s more information.
As always, this is just my opinion and the basics of why I hold this opinion so please don’t use this as justification for an entry. Always do you own research.
Trade safe!
I don’t believe the move will be as large as my usual trades but I feel it’s a decent setup for a short trade.
The price is continuing to move within the confines of an ascending triangle, this in itself usually results in a high probability of a bearish correction. There is also moderate divergence between the movements of price and the indicators shown which indicates potential weakening in price.
Further supporting my entry is the delta calculation. The delta shows an increase in buy orders but the price is unable to make higher highs. This is know as hidden divergence which shows that the market buy orders are being consistently absorbed to the point that the price is unable to make higher highs. I’m expecting the price to potentially move higher into the previous resistance zone highlighted by the green box. I will be scaling in positions if the price continues to move higher and will update when There’s more information.
As always, this is just my opinion and the basics of why I hold this opinion so please don’t use this as justification for an entry. Always do you own research.
Trade safe!
Comment:
The price has broken the ascending triangle. I'm now looking to see a close below the support. Following this break im anticipating a return to the structure before the price continues lower.
The price has broken the ascending triangle. I'm now looking to see a close below the support. Following this break im anticipating a return to the structure before the price continues lower.
Comment:
Position update. Both trades got stopped out at 01:30 this morning. I put a 15 pip trailing stop when the price broke 1.2299. the trades where stopped out at 1.22971. I'm expecting the price to test the structure and may open a further short position depending on how that transpires. I will update again IF I re-enter the markets.
TOTAL PROFIT - 179 pips
TOTAL PROFIT - 179 pips
Comment:
The price has retraced back to the structure but there's no real signs of weakness yet. Everything correlates with continued strength. Although it seems overbought on the sub 1hr TF's and so may correct slightly, I don't like to gamble given today's ISM data.
If the price reaches the 1.2430-50 area and shows signs of weakness I may consider an entry but for me, sometimes the best trade is no trade.
If the price reaches the 1.2430-50 area and shows signs of weakness I may consider an entry but for me, sometimes the best trade is no trade.
Despite the positive GDP print for the UK I still believe this pair is due a correction.
Ill update again as and when I open or close the trades.