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7pasos
May 6, 2013 8:44 AM

Gartley+Evening Star+76.4% Fib Retracement= Sell Short

New Zealand Dollar/U.S. DollarFXCM

Description

Here a simple trade set up:
The fail to reach the .8584 after break the uptrend line gives the idea that the recent movement to the .8554 was only a pullback to start a new down trend.
If you add here that we have a potential evening star (have to wait to the candle closes) and a gartley accomplished before that just at the 76.4% fib retracement of the firts down movement that broke the uptrend line ended, seems a pretty good trade setup.
Even more, the relationship between the actual minimum of the candle and the low of the low of the gartley makes a good risk reward relationship that we could take advantage of. At that level get the stops @ break even, and then wait to see if we can touch the decline target of the 127.9% of extension of the down trend movement at .8417
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