It all starts with price action. After a loss of downside momentum we have made a new high (purple) which indicates some bullish strength.
It has also completed a shark pattern at the 1.13 which is great, this shows a new high has been made, but we could be due for the pullback now, before a new high is made.
I will be looking for this bearish shark to become a Bullish 5-0 on it's retest of old support (the bottom light blue zone is 5-0 buy zone)
Another thing I like to see is if there is VOLUME at the price I'm looking to buy, which there is. We want to buy WITH the smart money, and they have been buying at the spot recently as well.
I have also drawn the potential channel we could be in using a method I teach with three drives patterns.
The dark blue line is an ABCD projection for where the possible New high could be. It is also a bearish 61.8 and Strong spot where sellers are sitting.
My stop will depend on my entry signal, I'm looking for a butterfly or crab to complete in the blue zone, this could make a big difference. But 50 pips will be my maximum! I'm really looking to use a 25 pip stop. I typically go in a scalp these moves and hold them for the long term.
I believe we are due for the dip/pullback because we just knocked out our previous swing low on the 1HR, momentum has shift to the downside on the 1HR.
Also, keep in mind we have MAJOR MAJOR news for the EU dropping right around the time of this buy idea, which could be the catalyst we need to push price up.
We are a long ways away from buy though, we need to see how price structure looks if it comes back down, things can change
Enjoy
It has also completed a shark pattern at the 1.13 which is great, this shows a new high has been made, but we could be due for the pullback now, before a new high is made.
I will be looking for this bearish shark to become a Bullish 5-0 on it's retest of old support (the bottom light blue zone is 5-0 buy zone)
Another thing I like to see is if there is VOLUME at the price I'm looking to buy, which there is. We want to buy WITH the smart money, and they have been buying at the spot recently as well.
I have also drawn the potential channel we could be in using a method I teach with three drives patterns.
The dark blue line is an ABCD projection for where the possible New high could be. It is also a bearish 61.8 and Strong spot where sellers are sitting.
My stop will depend on my entry signal, I'm looking for a butterfly or crab to complete in the blue zone, this could make a big difference. But 50 pips will be my maximum! I'm really looking to use a 25 pip stop. I typically go in a scalp these moves and hold them for the long term.
I believe we are due for the dip/pullback because we just knocked out our previous swing low on the 1HR, momentum has shift to the downside on the 1HR.
Also, keep in mind we have MAJOR MAJOR news for the EU dropping right around the time of this buy idea, which could be the catalyst we need to push price up.
We are a long ways away from buy though, we need to see how price structure looks if it comes back down, things can change
Enjoy