This is my trade idea for next week (thought I might finish it early).
By the end of this week it is likely you will see a three black crows candle stick pattern develop on the weekly chart which has a 78% chance to end to a bullish trend according to Thomas N. Bulkowski (thepatternsite.com/ThreeBlackCrows.html)
So how to trade this pattern? next week after the pattern has developed keep an eye on your chart for a retracement of either the 0.382 Fibonacci level @1.33530 or 0.5 @1.34117 level (most likely) before entering short. Make sure you wait for confirmation with either a candlestick pattern or an indicator, or even better both! And then place your sell order.
Reason why we wait for retracement is when a market moves in one direction for so long it tends to get exhausted and needs some room to breathe before it continues. If this pattern plays out right we could see a big move with a lot of pips $$. Enjoy!
By the end of this week it is likely you will see a three black crows candle stick pattern develop on the weekly chart which has a 78% chance to end to a bullish trend according to Thomas N. Bulkowski (thepatternsite.com/ThreeBlackCrows.html)
So how to trade this pattern? next week after the pattern has developed keep an eye on your chart for a retracement of either the 0.382 Fibonacci level @1.33530 or 0.5 @1.34117 level (most likely) before entering short. Make sure you wait for confirmation with either a candlestick pattern or an indicator, or even better both! And then place your sell order.
Reason why we wait for retracement is when a market moves in one direction for so long it tends to get exhausted and needs some room to breathe before it continues. If this pattern plays out right we could see a big move with a lot of pips $$. Enjoy!