Hello, im using here the same setup i used before on other GBP pairs : convergence-divergence together with other reasons:
- AB=CD pattern (pink line) - 0.61 fib retracement - convergence on AO - price retesting the broken trendline - strong structure as resistance
On H4 chart.
- another AB=CD pattern - Divergence
The SL is not so good, i was busy last friday managing other opened trades.
Regards
Comments
FrancisPujols
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Can we enter right now in short?
FullTimeTrader
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Hello, its depends on you trading system, timeframe, etc, many reasons. PERSONALLY i would prefer a retracement on H4 chart to have a better R/R ratio. Regards.
FrancisPujols
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You mean a pullback?
FullTimeTrader
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yes
Pip-thief
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Why have you included an invalid AB-CD pattern in your trading strategy ?
FullTimeTrader
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Hello, wich one is invalid? I will explain my reasons both on D1 and H4 charts. First, when talking about AB=CD pattern we always talk about a zone, not exactly to the pip. I trade AB=CD not everywhere but based on other reasons, mainly Elliott Waves. In this case on D1 chart i consider price is forming a complex WxYxZ correction, and the X leg are almost equal:
FullTimeTrader
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On H4 chart i see price formin an ABC zigzag with the relationship shown on chart. Regards.
Pip-thief
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On your very first chart, not the two you have attached after my comment. Your AB-CD pattern drawn with pink lines is invalid. It is invalid because your B-C leg extends beyond point A and therefore is not recognised and cannot be integrated as such a pattern in your chart, regardless of how you trade them.
Fxprotrader
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Great analysis.. I am exactly the same to this one and already in with a short trade.. Good luck!