Short Trade Forming Double Top
After seeing price form a tweezer top whilst reaching my weekly second trendline point on the daily timeframe, price depreciated significantly to my next key level of strong support (74.912) breaking the support with a strong bearish bar.
Due to price breaking my strong key level of support on the daily, price then decided to appreciate with a bullish hammer with strong selling pressure which gave the market more momentum to have another chance of breaking my weekly trendline but was unsuccessful and instead it formed a double top with tweezer tops.
This strong momentum of bearish candlesticks moved in my favour and I decided to enter when price formed a bearish engulfing pattern and another tweezer top showing the continuation on the downtrend movement.
Entered Price: 75.888
Stoploss: 76.145
Take Profit: 74.881
Pips: 101
Risk to reward: 1:4
Due to price breaking my strong key level of support on the daily, price then decided to appreciate with a bullish hammer with strong selling pressure which gave the market more momentum to have another chance of breaking my weekly trendline but was unsuccessful and instead it formed a double top with tweezer tops.
This strong momentum of bearish candlesticks moved in my favour and I decided to enter when price formed a bearish engulfing pattern and another tweezer top showing the continuation on the downtrend movement.
Entered Price: 75.888
Stoploss: 76.145
Take Profit: 74.881
Pips: 101
Risk to reward: 1:4