Potential bullish TC trade using Bat as entry pm GBPUSD H4
Updated
We now have a valid C-leg of a potential bat in the direction of the underlying trend.
If we complete, I'm looking to ride this up to retest the highest close of the pattern for my first target, and a 127.2 extension for my second target.
In other words, I'm using this pattern as a reason for entry into a trend continuation trade, and not shooting for the traditional targets og 38.2 and 61.8.
This is something new I'm experimenting with and currently backtesting and forwardtesting.
Should the Bat fail, there's a potential bullish Cypher further down. Traditional targets of 38.2 and 61.8 on that since my outside return then will be broken.
If we complete, I'm looking to ride this up to retest the highest close of the pattern for my first target, and a 127.2 extension for my second target.
In other words, I'm using this pattern as a reason for entry into a trend continuation trade, and not shooting for the traditional targets og 38.2 and 61.8.
This is something new I'm experimenting with and currently backtesting and forwardtesting.
Should the Bat fail, there's a potential bullish Cypher further down. Traditional targets of 38.2 and 61.8 on that since my outside return then will be broken.
Trade active
Trade closed: target reached
Due to violation (break and close below X), I switched my targets to conventional targets as trend is then considered broken according to my rules. Both targets hit.
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