Here we have a valid bearish crab pattern that has already been completed on FX:NZDUSD, but we are now able trade this pattern with much lower risk. Market has moved beyond the crab pattern completion point (161.8% Fib extension), which has allowed us to lower the risk and increase our potential profit. The stop loss for this pattern is usually 10 to 20 pips above 200% Fib extension level, but since we are close to the previous structure resistance, we might as well hide our stops above that level. Notice that by doing this we also take into consideration the key psychological round level @ 0.67000. We also have put in two double bottoms on this pair and if we get down to the 61.8% fib level (TG #2), than that would be a nice long opportunity based on 2618 trade setup. See the chart above for more details.
NOTE #1: This pair is about to test the 100 day moving average on the daily chart, likely to see some type of reaction from it. See the chart below after this description.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
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UPDATE #1: Short entry has been triggered. All the best to everyone :)
Trade closed: stop reached
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UPDATE #2: Hello Traders, stop loss has been reached. All positions are now closed for this setup. Focusing towards future trade setups :)
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UPDATE #2: SHORT POSITION RE-ENTRY (WITH NEW STOP AND TARGET LEVELS):
It's hard to short the top of a very strong leg like this.
Means that the upside is probably starting, and the next move is a pullback in a new uptrend.
moneymaking
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You are correct mate, that could definitely be it. Will keep a close eye on it though, thank you :)
anwar.mashni
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Soo close! pheww.. Im in on this with you with tp1 at 0.66350 though :)
moneymaking
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Hehe, yeah mate, nothing is for sure, even for now. We can still get stopped out OR fall straight through our targets. Just stick with the plan. You would have even gotten a better entry, right at the round number level. All the BEST mate :)
anwar.mashni
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thanks buddy, i actually got in at 0.66993! Best of luck, let us see how this ends up..hopefully..in our favor :)
moneymaking
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Yeah, just let the market do it's thing now :)
ElPatron.Y
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0.67 could be better short entry indeed...
moneymaking
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Hey mate, yeah that would be even better entry point :)
Means that the upside is probably starting, and the next move is a pullback in a new uptrend.