My previous trade set up was conservative with setting my entry at $1,535. I went back to the drawing board and I have come up with this idea. This is a pure technical set up and the fundamentals could change the outcome, whether it be favorable or unfavorable. After the pair broke, retested, and failed to close above its upward trendline, price has now found itself in a descending channel. As can seen on the chart, price tested the upper TL and got a hard reject as sellers were lined up at $1,517. Now it seems like price is heading for the lower TL at around $1446. I'm going to play this set up for now, so here's the plan:
Entered Sell At the Market: $1,493.27 Stop Loss: Just slightly above this week's high TP1: $1,446 TP2: $1,380 (That's if price broke out the channel)
Remember the overall structure on Daily and Weekly is Upward. There's a slight shift as seen by the descending channel. So beware!
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Good luck and happy trading!
Trade active
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Entered at the market: $1,493.27
Comment
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Adjusted SL to break even just in case the tide turns. I’ll continue to monitor the fundamentals.
Trade closed: stop reached
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Trade closed at break even. Bulls protected the $1480’s-$1490’s range. As you can see price broke out to the topside. But the bullish run didn’t last too long as sellers stepped back into the market at $1518 after the POTUS toted that the China trade talks are going extremely well. I’ll be looking for set up on this pair for the next trade week. Stay tuned!
@TishKunife, this is quite interesting. However, I will state that the 1495 zone is a very significant support and price breaking this support on the 1st of October might be a false break out considering the obvious that it is a uptrend looking at it from higher time frame. I will suggest a break of this resistance to confirm sell. My opinion though and thanks for sharing. Best of luck
darcsherry
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@darcsherry, we might also be experiencing a consolidation forming a falling wedge (correction).
TishKunife
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@darcsherry, yes, that’s the trade setup I’m playing.
TishKunife
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@darcsherry, that is true...I do recognize that the low made back in Oct 1st could be a breakout and currently price is in a tight range. I didn’t risk much plus I have a tight SL to protect me should it find buyers and breakout to the topside. Watching to see how it plays out.