If we take a look at the Brent UK Oil 4HR chart, we see an absolutely textbook double bottom pattern (Eve-Adam version).
Price action has already broken the neckline as seen in the diagram, and has also made a textbook retest and hold of the same line.
According to the pattern we should see a move of around $4.24 or ~10%. When multiplied by our chances of success (72% or 0.72) we get a TP target of $3.05 or ~7% or $45.64 ( measured from neckline.)
TP1: $45.64
TP2: Let run with a tight trailing stop (move to each new Higher Low)
SL: Bottom of right "bottom" or ~$38.85
This makes a very poor R/R of only ~0.85..... however, considering the movement seen , and the high chance of continuation,
this is a trade I will personally be making, closing half at our first TP and letting the remainder run with a SL set at breakeven point.
Pattern information and percentages : thepatternsite.com/DBTradingSetup.html
Price action has already broken the neckline as seen in the diagram, and has also made a textbook retest and hold of the same line.
According to the pattern we should see a move of around $4.24 or ~10%. When multiplied by our chances of success (72% or 0.72) we get a TP target of $3.05 or ~7% or $45.64 ( measured from neckline.)
TP1: $45.64
TP2: Let run with a tight trailing stop (move to each new Higher Low)
SL: Bottom of right "bottom" or ~$38.85
This makes a very poor R/R of only ~0.85..... however, considering the movement seen , and the high chance of continuation,
this is a trade I will personally be making, closing half at our first TP and letting the remainder run with a SL set at breakeven point.
Pattern information and percentages : thepatternsite.com/DBTradingSetup.html
Trade closed: stop reached