EUR/GBP: Shark, Quasimodo, trendline support and more...
Another one for my trading diary, partially based on an idea from FullTimeTrader (linked below).
I was looking to get bullish since my previous short which worked out great (still in with a small portion), see linked idea.
I don't particularly like sharks since the entry and SL can be tricky, at least with what I know about this pattern (based on the 5-0 pattern described by Scott Carney in Harmonic trading vol. 2)...
My entry will be just above the 0.7000 round level. I see confluence from the shark, possible Quasimodo support, an "up" trendline as seen in the monthly charts and a possible right shoulder of an inverse H&S pattern completing shortly (also see the idea from FullTimeTrader for the H&S pattern).
In case we go further down to completion of the shark at the 1.13 ext. of 0X I would be tempted to enter another short but in that case we would have broken the longterm up trendline which could limit the upside to a possible re-test of the broken trendline, so beware if you wish to take that trade, I surely will adjust my position size accordingly!!
Targets and SL are on the chart.
In case we don't get below the recent low or in any case the possible shark completion point we could get a nice rally up to 0.7600 which is where a possible AB=CD pattern could come together with a test of the 61.8% fib ret. of the last big move down (not entirely shown on the chart). A bounce from Quasimodo support usually also provides a nice rally to new higher highs. But that's of course all very hypothetical. For now the shark is the first pattern close to completion!
I was looking to get bullish since my previous short which worked out great (still in with a small portion), see linked idea.
I don't particularly like sharks since the entry and SL can be tricky, at least with what I know about this pattern (based on the 5-0 pattern described by Scott Carney in Harmonic trading vol. 2)...
My entry will be just above the 0.7000 round level. I see confluence from the shark, possible Quasimodo support, an "up" trendline as seen in the monthly charts and a possible right shoulder of an inverse H&S pattern completing shortly (also see the idea from FullTimeTrader for the H&S pattern).
In case we go further down to completion of the shark at the 1.13 ext. of 0X I would be tempted to enter another short but in that case we would have broken the longterm up trendline which could limit the upside to a possible re-test of the broken trendline, so beware if you wish to take that trade, I surely will adjust my position size accordingly!!
Targets and SL are on the chart.
In case we don't get below the recent low or in any case the possible shark completion point we could get a nice rally up to 0.7600 which is where a possible AB=CD pattern could come together with a test of the 61.8% fib ret. of the last big move down (not entirely shown on the chart). A bounce from Quasimodo support usually also provides a nice rally to new higher highs. But that's of course all very hypothetical. For now the shark is the first pattern close to completion!
Trade stängt: målet nått:
All targets reached, now at resistance!
