EURGPY Short Set up - High Probability, Great Risk Reward
Trend is down, and price has tested this resistance area five times, and did not make a new high as indicated by our Zig Zag. Evening star is forming on daily chart, and we have a tag of the upper Bollinger Band. Checking 4h chart shows several bearish candle reversals - most recently Falling Three Crows, and likewise tag of the upper band. Stochastic has started down. You can enter now ( more aggressive) based on the Three Crows pattern on the 4h chart, or wait until the close of today's bearish candle to confirm. ( conservative )
Normally, I wait for the daily candle to complete before entering, but in this case I am already in for the following reason:
Note the the five red circles on the CRSI chart. Larry Connors suggest a reversal signal anytime the signal exceeds 90 or drops below 10. As you can see, theses have confluence with both candle reversal patterns and the Stochastic. In all but one case the signal also formed at swing high as indicated by our Zig Zag pattern. So this a very strong final confirmation that we can show this pair.
This is a very good set up with a risk of 80 pips and a reward of 300 pips give or take a few depending on your entry. Still about 1:3 risk reward. Also, there is positive roll swap on they pair short so holding over the week end we should be okay.
Normally, I wait for the daily candle to complete before entering, but in this case I am already in for the following reason:
Note the the five red circles on the CRSI chart. Larry Connors suggest a reversal signal anytime the signal exceeds 90 or drops below 10. As you can see, theses have confluence with both candle reversal patterns and the Stochastic. In all but one case the signal also formed at swing high as indicated by our Zig Zag pattern. So this a very strong final confirmation that we can show this pair.
This is a very good set up with a risk of 80 pips and a reward of 300 pips give or take a few depending on your entry. Still about 1:3 risk reward. Also, there is positive roll swap on they pair short so holding over the week end we should be okay.
Comment:
"....that we can short this pair..."
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Also forgot to mention bearish divergence on 4h chart.
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Can move stop to breakeven and take profit on 1/2 position and trail the other 1/2 one ATR - about 80 pips. Or can let it ride down for another 230 pips or so.
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Compare to USDJPY idea just posted
