GBP/USD - Clear Head and Shoulder Long or Short term play
Updated
Time Frame:
- Weekly & Daily for analysis
- 4 Hour for execution
Trend: Currently in a LTF uptrend within a HTF pullback
- Weekly = Down
- Daily = Up
This one is fairly simple and straight forward but what makes it such a good opportunity is its’ potential of being the reversal pattern in a massive trend reversal.
As I mentioned in more detail in my last post, we have extremely strong Points of Interest (POI) below that will be acting as demand once price reaches them. We’ve been in a strong uptrend (pullback of a higher time frame downtrend) and this blue trend line has acted as strong support, 3 times now, directing the pullback rally.
Important: Each of these points of support are also holding massive amounts of liquidity that buyers and sellers both want to take advantage of. Meaning, both sides would have a field day an opportunity to take control and make large moves if we reached these levels (likely sellers would be more in control as they would be continuing the overall HTF trend). Because of this it is extremely important to take profits as you cannot be sure which demand zone could hold a reaction.
If this H&S on the 4 hr/daily chart can bring us out of this trend line, there is a ton of liquidity for a larger H&S to form (meaning this H&S I highlighted would be just the head of this larger H&S). In that case, there is a ton of liquidity on the already built left shoulder to take us down to mitigate the demand below.
Trade Plan:
Stop Loss: Above neckline (for shorter term play), above right shoulder (for longer term play)
Take Profit 1: Closest unmitigated demand zone below = 2.06 R:R
Take Profit 2 & 3: Lower demand zones – only with larger H&S formation = 6.5+ R:R
Thank everyone who views this and takes any benefit from it. I am on a journey to becoming the best 4X trader I can become and love to bring my fellow traders along for the ride. As always, feel free to like, comment, and message with any questions, comments, feedback, concerns, or GOOD VIBES!
Happy Trading!
FourXTrader
- Weekly & Daily for analysis
- 4 Hour for execution
Trend: Currently in a LTF uptrend within a HTF pullback
- Weekly = Down
- Daily = Up
This one is fairly simple and straight forward but what makes it such a good opportunity is its’ potential of being the reversal pattern in a massive trend reversal.
As I mentioned in more detail in my last post, we have extremely strong Points of Interest (POI) below that will be acting as demand once price reaches them. We’ve been in a strong uptrend (pullback of a higher time frame downtrend) and this blue trend line has acted as strong support, 3 times now, directing the pullback rally.
Important: Each of these points of support are also holding massive amounts of liquidity that buyers and sellers both want to take advantage of. Meaning, both sides would have a field day an opportunity to take control and make large moves if we reached these levels (likely sellers would be more in control as they would be continuing the overall HTF trend). Because of this it is extremely important to take profits as you cannot be sure which demand zone could hold a reaction.
If this H&S on the 4 hr/daily chart can bring us out of this trend line, there is a ton of liquidity for a larger H&S to form (meaning this H&S I highlighted would be just the head of this larger H&S). In that case, there is a ton of liquidity on the already built left shoulder to take us down to mitigate the demand below.
Trade Plan:
Stop Loss: Above neckline (for shorter term play), above right shoulder (for longer term play)
Take Profit 1: Closest unmitigated demand zone below = 2.06 R:R
Take Profit 2 & 3: Lower demand zones – only with larger H&S formation = 6.5+ R:R
Thank everyone who views this and takes any benefit from it. I am on a journey to becoming the best 4X trader I can become and love to bring my fellow traders along for the ride. As always, feel free to like, comment, and message with any questions, comments, feedback, concerns, or GOOD VIBES!
Happy Trading!
FourXTrader
Note
Overnight we hit our LTF Supply zone and were therefore given the confirmation to enter the trade. Will share in next post where the confirmation came from and exact trade details!Trade closed: target reached
Target Take Profit 1 has been hit with momentum and we are well on our way toward our TP2!!Successful 2+ R:R Trade
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