The on the left gives us a possible short setup based on a possible which could complete at a possible downsloping and possible dynamic resistance (confluence). Bare in mind that the momentum oscillators are and we could see some further upside! I do think however that this is a good opportunity with very good R/R. 4 initial possible targets are drawn on chart, based on fibonacci and possible completion of the . An additional 5th longterm target could be taken (small percentage) in case PA goes to complete a possible (bat or ). Please note that the bat/shark patterns are only drawn here for illustration purposes and to keep in mind what could be developing after this setup completes.The setup is mainly based on the and resistance! I have my sell limit orders ready for entry @ 1.9820.
Short-term short trade setup:
On the 4H chart on the left we might have just completed a in a possible S/R zone. 2 trades based on this bat are drawn in the chart. SL will be above X and possible completion of the on the daily and also above the longterm . We have currently surpassed the of XA (depending on where you draw A, I didn't include the spike...) and PA is hovering around 0.9800.
The fact that we did not get a rejection of that level could point to further upside and possible completion of the on the daily so proceed with caution! Also no real signs here on the momentum oscillators which could point to possible further upside. I will enter at market now (0.9800) and will take 80% at TP1 and the rest at TP2.
ADJUST YOUR POSITION SIZE BASED ON THE RESPECTIVE RISK FOR EACH SETUP!!
I took some profits @ 1.9760 when the down move was showing signs of exhaustion...
The rest I will leave open with SL untouched until TP1 is reached.
It could be that PA goes back up for a re-test of that high (double top on smaller timeframe) before it goes down again, this gives people who are not in yet a new opportunity to still get in and short it at a possible better (higher) level (SL unchanged, better R/R...).