Reading the chart
After the French election the pair surged higher until it hit a "major" dynamic resistance (reprojected a channel aligned at the 2016-10-06). Now it consolidates awaiting the big news from the UK. As a pattern trader I look for patterns within consolidation with potential to break out. If I loose, I reset and wait for a retest of the broken consolidation zone.
Measured from the latest highest low I saw two things: a Shark886 pattern and a Gartley pattern. Both completion points creates a nice potential reversal zone (PRZ) of 3 pips at the most recent higher low. Both patterns share the same stoploss, so it is more attractive to take the entry of the Shark pattern for a better risk:reward ratio.
Setup Shark886
Entry: 0.8668
Stoploss: 0.8642
Target 1: 0.8706 (1:1.46)
Target 2: 0.8729 (1:2.35)
Target 3: 0.8794 (1:4.85)
After the French election the pair surged higher until it hit a "major" dynamic resistance (reprojected a channel aligned at the 2016-10-06). Now it consolidates awaiting the big news from the UK. As a pattern trader I look for patterns within consolidation with potential to break out. If I loose, I reset and wait for a retest of the broken consolidation zone.
Measured from the latest highest low I saw two things: a Shark886 pattern and a Gartley pattern. Both completion points creates a nice potential reversal zone (PRZ) of 3 pips at the most recent higher low. Both patterns share the same stoploss, so it is more attractive to take the entry of the Shark pattern for a better risk:reward ratio.
Setup Shark886
Entry: 0.8668
Stoploss: 0.8642
Target 1: 0.8706 (1:1.46)
Target 2: 0.8729 (1:2.35)
Target 3: 0.8794 (1:4.85)
Trade active
Trade closed: target reached:
All targets reached, very nice :D