EUR/GBP Update 3
https://www.tradingview.com/x/BYF6Ozvs/
So looking at the 1H chart 2 days into the week, I am pleased to see that my analysis seems to be paying off so far. I updated the trend lines to represent the most relevant market information. This update shows a steep descending channel which is a good reversal pattern. This only solidifies the bullish move that is to come.
Now I want to go a little bit into the trade itself. I was not in this trade. Since this is my first time analyzing the markets in almost a year, I want to do a lot of back testing and shadow trading before I put money back in my trading account.
But I'd like to go a bit more on the opportunity and why I wouldn't have taken it.
If I were to have taken this trade, it would've been at 0.88660. This would have been a touch on the Daily support and would have set a 20 pip SL with a 155 pip PT for a 7.44% gain if it hits the top of the 4H pattern, or a 100 pip PT for a 4.05% gain if it only retraces to most previous high.
However, as I continue analyzing the market, I start to see the formation of a small ascending wedge on the 1H chart.
What's possible here with this pattern is a small dip before aggressively shooting up impulsively. Should this play out in the live markets within the next few days, I think it would be a great area of entry - and I could execute my original plan and enter at 0.88660!
We'll keep an eye on this for the next few days. In the meantime, drop your thoughts and ideas in the comments!
So looking at the 1H chart 2 days into the week, I am pleased to see that my analysis seems to be paying off so far. I updated the trend lines to represent the most relevant market information. This update shows a steep descending channel which is a good reversal pattern. This only solidifies the bullish move that is to come.
Now I want to go a little bit into the trade itself. I was not in this trade. Since this is my first time analyzing the markets in almost a year, I want to do a lot of back testing and shadow trading before I put money back in my trading account.
But I'd like to go a bit more on the opportunity and why I wouldn't have taken it.
If I were to have taken this trade, it would've been at 0.88660. This would have been a touch on the Daily support and would have set a 20 pip SL with a 155 pip PT for a 7.44% gain if it hits the top of the 4H pattern, or a 100 pip PT for a 4.05% gain if it only retraces to most previous high.
However, as I continue analyzing the market, I start to see the formation of a small ascending wedge on the 1H chart.
What's possible here with this pattern is a small dip before aggressively shooting up impulsively. Should this play out in the live markets within the next few days, I think it would be a great area of entry - and I could execute my original plan and enter at 0.88660!
We'll keep an eye on this for the next few days. In the meantime, drop your thoughts and ideas in the comments!
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