EURGBP 1H HEAD AND SHOULDERS NECKLINE BREAK PULLBACK ENGULFING
On the EURGBP 1H time frame there was recently a perfect head and shoulders pattern that formed.
A strong neckline break followed by a 50% pullback and then a strong bearish engulfing set up a perfect high probability trade.
The head and shoulders pattern confirms that the trend is temporarily turning bearish.
The engulfing candle opened perfectly at the neckline and spiked up forming a huge wick.
The engulfing candle engulfed 6 previous candles which increases the probability of further bearish momentum.
As soon as the bearish engulfing candles closes, it is safe to enter short.
A safe stop loss would be placed slightly above the high of the bearish engulfing candle.
A riskier stop loss would be placed slightly above the bearish engulfing candle body high.
A 1:3 risk to reward offers plenty of profit.
It is also important to note that the bearish engulfing candle closed at 3am CST.
A strong neckline break followed by a 50% pullback and then a strong bearish engulfing set up a perfect high probability trade.
The head and shoulders pattern confirms that the trend is temporarily turning bearish.
The engulfing candle opened perfectly at the neckline and spiked up forming a huge wick.
The engulfing candle engulfed 6 previous candles which increases the probability of further bearish momentum.
As soon as the bearish engulfing candles closes, it is safe to enter short.
A safe stop loss would be placed slightly above the high of the bearish engulfing candle.
A riskier stop loss would be placed slightly above the bearish engulfing candle body high.
A 1:3 risk to reward offers plenty of profit.
It is also important to note that the bearish engulfing candle closed at 3am CST.
