CHFJPY, Lesson in measured moves
Updated
Some idea came to my mind. The long-term trend is up. On the daily, it is obvious we are in a consolidation area. Weekly is bullish, Daily is bullish, but...
Open the 4 Hour chart or the 2 Hour one and it won't be hard to spot all measured moves or AB=CDs. Each one of them was a great opportunity for a small stop-big reward trade. See the blue line that is pressing the price down. I am conscious of the 200 EMA support, but there are 2 major scenarios from here.
Either a breakout of this line now, or we may play a fakeout on the short side if we have a price action signal short. I am as usual a fan of taking the way in which the majority of the people are trapped - which here is the short side.
It will give room for some 1 to 3+ RR trade if you don't scale out which is not bad at all.
Wanted to share the chart as it is almost like a lesson in AB=CD moves.
Open the 4 Hour chart or the 2 Hour one and it won't be hard to spot all measured moves or AB=CDs. Each one of them was a great opportunity for a small stop-big reward trade. See the blue line that is pressing the price down. I am conscious of the 200 EMA support, but there are 2 major scenarios from here.
Either a breakout of this line now, or we may play a fakeout on the short side if we have a price action signal short. I am as usual a fan of taking the way in which the majority of the people are trapped - which here is the short side.
It will give room for some 1 to 3+ RR trade if you don't scale out which is not bad at all.
Wanted to share the chart as it is almost like a lesson in AB=CD moves.
Order cancelled
The breakout scenario played out and invalidated this idea. There was no price action confirmation in the form of some good bear bar so this idea didn't play out. At the moment it looks like we might have a Gartley222 Short from the 78% Fib level, but this is a topic for another idea.
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