Hey guys, I am monitoring EURGBP.
Pattern Identification
I see a potential Bat pattern completing at 0.8570.
This pattern completion level is great as this level is also at the upper boundary of a down sloping channel.
Trade Execution
Based on the rules of the bat pattern, I will look to execute my short around the PRZ at 0.8570, once I see that price action reacts at this zone.
Typical signals I watch for is a hammer or a candlestick reversal at the PRZ level.
When will this setup be invalidated?
If price does not react at 0.8570, and the PRZ is broken above with strong green candles, this pattern will be invalidated.
Pattern Identification
I see a potential Bat pattern completing at 0.8570.
This pattern completion level is great as this level is also at the upper boundary of a down sloping channel.
Trade Execution
Based on the rules of the bat pattern, I will look to execute my short around the PRZ at 0.8570, once I see that price action reacts at this zone.
Typical signals I watch for is a hammer or a candlestick reversal at the PRZ level.
When will this setup be invalidated?
If price does not react at 0.8570, and the PRZ is broken above with strong green candles, this pattern will be invalidated.
Note
We are right there at the PRZ.
2 warning signs is that the H4 RSI is not overbought yet, most ideally I want a overbought + divergence on the RSI.
I will enter my short on a candlestick reversal pattern on this chart or a nice hammer candlestick close.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.