Updating idea on EURUSD. The goal is still the same as my previous post. However, now, a Head and Shoulder pattern has been observed on the H1 timeframe. This could call for an opportunity to take a quick short trade before our bigger original trade in the H4 timeframe.
If the structure of the Head and Shoulder pattern remains valid, the price of 1.13350 will not be broken. In this case, we can enter a short position from the entry point of 1.3350. The take profit area will be at 1.12750, where there is a clear support area. Let's not be too greedy in this H1 trade. I would personally keep stop loss open for now and observe whether our H4 entry point of 1.137 plays out. However, if you prefer to have a stop loss, 1.137 could be a possible exit point.
If the structure of the Head and Shoulder pattern does not remain valid, which is if the price of 1.13350 is broken. We will not do anything and shall wait and see if our H4 analysis earlier plays out.
If you agree with this trade, do give it a huge thumbs up! :)
If the structure of the Head and Shoulder pattern remains valid, the price of 1.13350 will not be broken. In this case, we can enter a short position from the entry point of 1.3350. The take profit area will be at 1.12750, where there is a clear support area. Let's not be too greedy in this H1 trade. I would personally keep stop loss open for now and observe whether our H4 entry point of 1.137 plays out. However, if you prefer to have a stop loss, 1.137 could be a possible exit point.
If the structure of the Head and Shoulder pattern does not remain valid, which is if the price of 1.13350 is broken. We will not do anything and shall wait and see if our H4 analysis earlier plays out.
If you agree with this trade, do give it a huge thumbs up! :)
Order cancelled:
As seen, the price has broken above 1.13350. As such, the trade based on the Head and Shoulder pattern will not be entered. Let's wait and see how prices react to 1.137 so that we can decide whether our 4H trading plan is valid :)
