Hello Traders, and welcome to another Technical Analysis with TCPLTP!
Today, we'll be exploring the EURUSD pair, which has formed an advanced harmonic pattern called the Bat pattern on its hourly chart. Before we dive into the setup, let me guide you through the key aspects of Bat patterns:
The Bat pattern is a popular harmonic pattern that helps identify potential reversals in the market. It consists of five points: X, A, B, C, and D. The pattern is characterized by specific Fibonacci ratios between these points.
Once the Bat pattern is identified, we look for potential entry points and targets. The entry is usually at the completion of the CD leg, while the targets are set at Fibonacci extension levels of the AD leg.
Now, let's get back to the EURUSD Bat pattern setup. With the necessary knowledge of Bat patterns, we can better assess the trading opportunity presented by this formation.
Let's take a closer look at the trade opportunity:
Long Entry Level (EL): 1.09437
The long entry level is strategically set using Fibonacci thresholds from different swings in price. This level marks the potential entry point for a long position.
Stop Loss (SL): Below 'D'
The stop-loss order is placed below point 'D', which is a common practice in trading harmonic patterns. This placement ensures that the trade is protected in case the pattern fails to play out as expected.
Target 1:
38% AD: 1.10515
50% AD: 1.10940
Target 1 represents potential exit points for the trade. These levels are based on Fibonacci extension ratios of the AD leg. Traders often take partial profits or adjust their positions at these levels.
Target 2:
62% AD: 1.11364
79% AD: 1.11982
Target 2 provides additional exit points for the trade. These levels are also based on Fibonacci extension ratios of the AD leg and may be used for more significant profit-taking.
It's important to emphasize that further confirmation is necessary before executing the trade. While the price remains above the long entry level (EL) at 1.09437, the pattern is considered valid.
Traders should exercise caution and wait for additional confirmation signals before entering the trade. One common approach is to wait for the price to close above the long entry level or look for other technical indicators that support the bullish bias of the Bat pattern.
Trading with confirmation helps reduce the risk of false signals and increases the probability of a successful trade. Patience and discipline are crucial in waiting for the right conditions to align before executing a trade.
Remember to always use proper risk management techniques and set appropriate stop-loss levels to protect your capital in case the trade doesn't go as expected.
Happy trading and may your trades be profitable!
Today, we'll be exploring the EURUSD pair, which has formed an advanced harmonic pattern called the Bat pattern on its hourly chart. Before we dive into the setup, let me guide you through the key aspects of Bat patterns:
The Bat pattern is a popular harmonic pattern that helps identify potential reversals in the market. It consists of five points: X, A, B, C, and D. The pattern is characterized by specific Fibonacci ratios between these points.
Once the Bat pattern is identified, we look for potential entry points and targets. The entry is usually at the completion of the CD leg, while the targets are set at Fibonacci extension levels of the AD leg.
Now, let's get back to the EURUSD Bat pattern setup. With the necessary knowledge of Bat patterns, we can better assess the trading opportunity presented by this formation.
Let's take a closer look at the trade opportunity:
Long Entry Level (EL): 1.09437
The long entry level is strategically set using Fibonacci thresholds from different swings in price. This level marks the potential entry point for a long position.
Stop Loss (SL): Below 'D'
The stop-loss order is placed below point 'D', which is a common practice in trading harmonic patterns. This placement ensures that the trade is protected in case the pattern fails to play out as expected.
Target 1:
38% AD: 1.10515
50% AD: 1.10940
Target 1 represents potential exit points for the trade. These levels are based on Fibonacci extension ratios of the AD leg. Traders often take partial profits or adjust their positions at these levels.
Target 2:
62% AD: 1.11364
79% AD: 1.11982
Target 2 provides additional exit points for the trade. These levels are also based on Fibonacci extension ratios of the AD leg and may be used for more significant profit-taking.
It's important to emphasize that further confirmation is necessary before executing the trade. While the price remains above the long entry level (EL) at 1.09437, the pattern is considered valid.
Traders should exercise caution and wait for additional confirmation signals before entering the trade. One common approach is to wait for the price to close above the long entry level or look for other technical indicators that support the bullish bias of the Bat pattern.
Trading with confirmation helps reduce the risk of false signals and increases the probability of a successful trade. Patience and discipline are crucial in waiting for the right conditions to align before executing a trade.
Remember to always use proper risk management techniques and set appropriate stop-loss levels to protect your capital in case the trade doesn't go as expected.
Happy trading and may your trades be profitable!
Note
📈🇺🇸 Good news for traders! The US Nonfarm Payrolls (NFP) for July showed a rise of 187,000, although it fell slightly below the market expectation of 200,000. June's increase of 209,000 was revised lower to 185,000.
📉 On a positive note, the Unemployment Rate edged lower to 3.5% from 3.6%, and the annual wage inflation, measured by the change in Average Hourly Earnings, remained steady at 4.4%. This surpassed the market forecast of 4.2%. Additionally, the U6 Unemployment Rate declined to 6.7%, while the Labor Force Participation rate stood unchanged at 62.6%.
💹 In response to the mixed July jobs report, the US Dollar experienced modest selling pressure. At the time of press, the US Dollar Index was down 0.1% on the day, trading at 102.40.
📰📈📉 Stay informed and keep a close eye on the market movements as we provide updates and analysis on this important economic data! 🚀📊
Note
Note
As Akil often emphasizes, examining leftward historical structures can provide valuable clues for our EUR/USD technical analysis. By carefully observing these historical patterns, we can start identifying emerging formations that enable us to leverage Fibonacci retracement and extension levels. This precision in analysis allows us to establish effective strategies for protecting our positions in the face of future price movements.Remember, the market's past behavior often leaves behind discernible patterns that echo through time. By recognizing these patterns and applying Fibonacci tools, we empower ourselves to make more informed decisions about potential future price movements. This combination of technical analysis techniques assists us in safeguarding our investments by having a calculated approach to risk management and profit-taking.
In conclusion, Akil's wisdom to "look left" and decipher the historical structures is indeed a valuable approach. Integrating this perspective with Fibonacci analysis equips us with a comprehensive strategy to navigate the dynamic EUR/USD market, enhancing our ability to make accurate predictions and effectively protect our interests in the ever-changing financial landscape.
Note
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.
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.