GBP CHF - Short - Will sell this pair off off the double top from EMA 800 once candle closes as a hammer.
- The hammer should either doji or close red if i am to take it but this is a clear double top off of an EMA if i do
- Because this pair is currently in bullish momentum i will manage my stop and tp since it may not reverse as hard as i may expect
- Nonetheless i thought this was good enough to put out there since it would be a very clean double top on the close
- Again note i am only taking this once a candle close red or topside pins and closes as a doji (the candle's body must be essentially negligible)
- If this pair breaks the high and doesn't reverse i will no longer have this trade on the table
- Stop is 10 - 15 pips above the high off the formation
- TP slightly above the 200 EMA
- Although i would prefer if the RSI (green) was above 68 on the TDI, the first leg off the formation broke 68 and bolinger bands and hooked back in increasing my confidence
- The hammer should either doji or close red if i am to take it but this is a clear double top off of an EMA if i do
- Because this pair is currently in bullish momentum i will manage my stop and tp since it may not reverse as hard as i may expect
- Nonetheless i thought this was good enough to put out there since it would be a very clean double top on the close
- Again note i am only taking this once a candle close red or topside pins and closes as a doji (the candle's body must be essentially negligible)
- If this pair breaks the high and doesn't reverse i will no longer have this trade on the table
- Stop is 10 - 15 pips above the high off the formation
- TP slightly above the 200 EMA
- Although i would prefer if the RSI (green) was above 68 on the TDI, the first leg off the formation broke 68 and bolinger bands and hooked back in increasing my confidence
Comment:
Forgot to mention that if it does begin to correct divergence ma appear which is another short confirmation
Trade active:
Trade entered off of hammer close held the high of formation, to be safe a red candle entry wouldn't go amiss
Comment:
Stop will be moved to break even at 32 pips profit (near the 50 ema)
Trade closed: stop reached:
Should have waited for close under 13 ema which occured much later invalidating the pattern and trade (late update trade invalid due to not enough confirmations)