Short

EUR/USD SHORT - Evening Star/Counter Trend Line Bounce/DoubleTop

Updated

The pair has broken through the ascending 4HR trend line a while ago, and was looking to move down, it created a new 4HR trend line but this time descending. It has just touched this new counter trend line with a shooting star candle on the 1HR followed by a strong bearish candle and preceded by a strong bullish candle, this is the setup of a bearish pattern, the evening star. Also price retested the top, creating a double top on the 1HR. Bouncing from the trend line and creating a bearish pattern and the double top means i entered the trade short for a decent R/R, placing my TP at the swing low and SL above the double top.

TP @ 1.06426
SL @ 1.07157
R/R @ 2.22

Note

Hammer candle on the daily time frame is a confluence against my analysis. Exited trade at a small profit.

Note

Should have held the trade. The price broke out of the previous channel, bound to go down.

KhaleemAli

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.