Head and shoulders in the making
Updated
Well, so no one around is a prophet, right?
And just because something repeats itself - doesn't mean it will happen again, right?
That's why it's very important before entering - to check all the conditions that the trade can indeed go through, and to properly manage risks.
It's just an idea...
And another important thing: according to the behavior of the price in the past in this range, there is definitely a possibility that the price will "explode" upwards. There are several important economic announcements tomorrow that can definitely change the picture or make it real. Always be careful.
After clarifying this:
1. Every time a bigger head and shoulders.
2. The templates are "dirty", not entirely classic, but I wouldn't expect less of this sophistication from the Big Money...
3. The daily trend is of a decrease in general and more and more sharp (as you can see).
4. At the same time, the DXY also has a head and shoulders inverse pattern and proves itself quite nicely in the progress (I have an idea about this from January 12).
And a very important note: in the end I do see this pair rising to the 0.667 area. And it is after a very tense descent. But in the meantime, as long as the momentum is of a decline, there is no problem to take advantage of it, especially that such a decline to the daily support will create a second "leg", from which - perhaps - it will go up.
And just because something repeats itself - doesn't mean it will happen again, right?
That's why it's very important before entering - to check all the conditions that the trade can indeed go through, and to properly manage risks.
It's just an idea...
And another important thing: according to the behavior of the price in the past in this range, there is definitely a possibility that the price will "explode" upwards. There are several important economic announcements tomorrow that can definitely change the picture or make it real. Always be careful.
After clarifying this:
1. Every time a bigger head and shoulders.
2. The templates are "dirty", not entirely classic, but I wouldn't expect less of this sophistication from the Big Money...
3. The daily trend is of a decrease in general and more and more sharp (as you can see).
4. At the same time, the DXY also has a head and shoulders inverse pattern and proves itself quite nicely in the progress (I have an idea about this from January 12).
And a very important note: in the end I do see this pair rising to the 0.667 area. And it is after a very tense descent. But in the meantime, as long as the momentum is of a decline, there is no problem to take advantage of it, especially that such a decline to the daily support will create a second "leg", from which - perhaps - it will go up.
Trade active
got into short now.risky, but it look good enghof for me.
before NY news - I'll see what to do next
Note
its still a very risky trade. Its a very strong suppot and the two last bottoms are (kind of..) dubble bottom. I'm still in, but very carefuly.Trade closed manually
for now - i got a long signal, so I'm going to be out soon.still there is a chance of a short, but in a higher price, maybe 0.6605.
I'll see what happen in the next hours.
Note
This is the current situation:The price action areas are very clear.
Strong support, strong resistance, spikes of volume at a falling price, but also at a rising price not so weak...
The pattern looks quite solid in 4H, but the strong volatility between the two levels, and the consolidation in the daily chart, at least for me - do not allow me to decide at the moment where it is going, will it execute the pattern or break the downward trend line?
The solution = patience. At some point, the chart will have to decide. Probably
p.s. The descending triangle signals an Engulfing candle with high volume, which is further support for the belief that the decline is the most logical option. Usually it will pull back, then go down, according to the size of the candle.
Trade closed: target reached
took a while, but it did get to the h&s target - anf exactly ftom there - rise. for now, seems to be aiming lower
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