Confirmation & Time to enter for reversal! (Update to last post)
Updated
Time Frame:
- 4HR analysis
- 15min Confirmation for Entry
As mentioned in my previous post titled “Clear Head and Shoulders Long or Short term play”, we were waiting for an entry signal into our H&S trade. This signal could come in many ways but in my strategy, once a larger time frame (2Hr-1day) supply zone is hit, I then turn to the lower time frame and wait for a bearish signal (typically a CHoCH (major or minor)) and thereafter identify the LTF supply zone that caused that CHoCH. Reaching that supply zone is our signal to enter and we therefore have a tight and calculated stop loss with a stronger R:R.
We have now broken previous structure and are considered in a LTF downtrend (with a lower high and lower low) and can begin our descent toward breaking through the H&S neckline and the important trend line that is holding us up.
My trade plan is as follows:
Stop Loss – Above LTF Supply zone (higher R:R), Above right shoulder/previous higher high (lower R:R)
Take Profit 1 – Neckline of H&S = 8.32 R:R
Take Profit 2 – Trendline bounce/break = 12.5 R:R (or 6.6 with higher stop loss)
- 4HR analysis
- 15min Confirmation for Entry
As mentioned in my previous post titled “Clear Head and Shoulders Long or Short term play”, we were waiting for an entry signal into our H&S trade. This signal could come in many ways but in my strategy, once a larger time frame (2Hr-1day) supply zone is hit, I then turn to the lower time frame and wait for a bearish signal (typically a CHoCH (major or minor)) and thereafter identify the LTF supply zone that caused that CHoCH. Reaching that supply zone is our signal to enter and we therefore have a tight and calculated stop loss with a stronger R:R.
We have now broken previous structure and are considered in a LTF downtrend (with a lower high and lower low) and can begin our descent toward breaking through the H&S neckline and the important trend line that is holding us up.
My trade plan is as follows:
Stop Loss – Above LTF Supply zone (higher R:R), Above right shoulder/previous higher high (lower R:R)
Take Profit 1 – Neckline of H&S = 8.32 R:R
Take Profit 2 – Trendline bounce/break = 12.5 R:R (or 6.6 with higher stop loss)
Trade closed: target reached
Take profit 1 hit for a successful 8.3 R:R Trade!!Approaching our protected Take profit 2 for a 6.6 R:R Trade!
Trade closed: target reached
Take Profit 2 hit for a 6.6 R:R! This H&S and market structure analysis led us to massive and predicted profit!
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