Euro to do the Pounding? - Ichimoku EUR/GBP Drawback Setup
For this setup I'm zooming in on the 1 hour time frame. While this pair remains on a bearish trend overall on the larger time frames, it looks like we will be getting a drawback. Keep in mind that since this setup is technically a drawback right now that it carries a little more risk than a standard trend trade setup, so I will only be risking 1.5% of my capital if this trade is triggered.I am looking for an entry if we break above our previous candle to enter a buy position. Since it is a drawback setup (for now) I am not going to aim too far out for my TP. I've drawn several areas that if we see strong resistance I will close partial or the whole position out at. As an alternative entry for slightly better risk to reward, we could also wait for a test of kijun sen again and look to buy there, should a support candle form. I mentioned that this is a drawback setup for now, the reason behind that is, should we hold support and see some bullish signs on those higher time frames, this setup could end up being an early reversal. If we fail to hold support or climb higher, this setup may become invalidated.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.