MAIN INFO - Date: Feb 04, 2019 (21:04 PT) - Trend: Short (reversal) - Time frame: Day - Pattern/Strategy: Reversal Head and Shoulder - Bias: Long - News: No News
TREND ANALYSIS - Health (highs and lows tell the whole story): Finished - Momentum (distance between subsequent retests): Uncertain - Clustering (if the market begins to cluster or group for an extended period at a key level, chances are the trend is about to break up or down and reverse): No clustering - Strength: Good Trend line slope + Candle bodies (small wicks, not too big) + EXP Moving averages (on one side)
ENTRY POINT ANALYSIS - 'Primary Cycle' Analysis (1W): Agreeing with 'Secondary Cycle' (1D) - Market Phase Analysis (Dow Theory): Speculation - Candlestick Analysis: Pinbar (bulls are getting ground) - Key Level Analysis: Support/Resistance - (10&20) EMA Analysis: Dynamic S/R + Overextension (reversion to mean) completed by the Pin bar + Crossing (trend inversion) on January 09th. Price is above the EMA 10&20. The space between EMAs (momentum information) is increasing => momentum increases. - Wave Analysis: Impulsive
TRADE DETAILS - Timing (entry chosen on): D1 - Volatility Analysis: Medium - Liquidity Analysis: High (Tue/Wed/Thu) - Order type: Limit - Week trades #: 1st - Risk (equity %): 0.25% - Entry: At Pin bar neck. - Stop Loss: At Pin bar lower 2/3. - Take Profit: At measured objective = ~ 1220 pips - R:R: 12.7
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Limit order hit at 05:15 am (PT) Feb 05, 2019.
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This set up turned out to be a funny double-sided "Inside Bar Pin Bar Combo"... besides being (in first instance) a reversal H&S. The pin bar on Feb 04 is engulfing the inside bar of the day before (this is what JB calls "Inside Bar Pin Bar Combo"); plus it is now the mother bar for the candle that just closed (Feb 05).