A butterfly pattern has formed with entry point the same as the Fibonacci Inversion trading setup. Market overextended itself against the trend and reached a strong sellers area. We are waiting for the rejection. Sell now!!
There is RSI Divergence in lower timeframes. Stop Loss and Targets as in chart.
Fibonacci inversion trading setup with 2:1 reward/risk.
If market retest D point short the market. There is also absolute confluence between the 1.618% projection of AB and the 61.8% retracement of the impulse leg.
2618 Strategy Trading Setup
1) Double Top
2) Break of structure (neckline) to the downside
3) 61.8% retracement of AB leg
4) SELL order at C point
5-10 pips above DT
1) next structure level, probably where B is pointed
2) 1.272% extension of AB leg
A Gartley advance pattern trading setup is forming.
The D point would be at a key resistance level , market has a consolidated bias which favors pattern creation and confirmation. There is also AB=CD completion above Gartley's D point. The AB=CD pattern trading rules indicate the entry point few pips BELOW D. RSI and price action would be our guide but right now...
An advance pattern trading opportunity lays at previous highs and offer a great risk/reward trading setup.
It is also the ideal level to get positioned for the trendline break if it is to occur, althouth our trading rules for the trendline break indicate to sell after the break and retest.
Gold just can't stop giving us clear advanced pattern trading setups!
It's time for a GARTLEY bearish pattern formation after the profitable confirmation of the '222' Gartley and Cypher earlier in the week.
The entry, SL and TP levels as in the chart.
The plan is to wait for the market to retrace at the EMAs and the fibonacci levels to confirm the break and short according with the price action.
If you have already a short position from the BAT pattern trading setup then relax, that entry level is perfect. Keep your position!
As you can see in the chart there are potential trading setups in this pair.
If you are not familiar with the fibonacci inversion trading setup I will update later this Idea with an educational post.
As far market is trading below a significant level. Although technical analysis maybe justify a short position from that level. This is not part of my trading plan.
When we have a broken trendline we always looking for a pullback-retest of the trendline or for an advance pattern formation in order to enter the market at the direction of the break.
Here there is a pending Cypher pattern formation that gives us the reason we are waiting for.
SL and TP points as in the chart