Background:
- In the overall picture, price is forming a boardening pattern and a possible H&S formation
- Left wide shoulder is formed and right shoulder should be forming?
- This trade is enter to trade the forming of the H&S right shoulder
- In recent price action, couple of interesting price action pattern formed at this broadening pattern support:
1.) Morning star with a gap up
2.) Bullish hammer failing to close the gap
3.) Bullish divergence
Entry:
- Buy stop of 15pips higher than the hammer's high @ 0.8582
TP:
- Left shoulder's bull run is about 380pips from the low
- As such i have set a discounted range of 300 pips from the low, near the 50MA @ 0.877
SL:
- Set at the low of the gap @ 0.848
- In the overall picture, price is forming a boardening pattern and a possible H&S formation
- Left wide shoulder is formed and right shoulder should be forming?
- This trade is enter to trade the forming of the H&S right shoulder
- In recent price action, couple of interesting price action pattern formed at this broadening pattern support:
1.) Morning star with a gap up
2.) Bullish hammer failing to close the gap
3.) Bullish divergence
Entry:
- Buy stop of 15pips higher than the hammer's high @ 0.8582
TP:
- Left shoulder's bull run is about 380pips from the low
- As such i have set a discounted range of 300 pips from the low, near the 50MA @ 0.877
SL:
- Set at the low of the gap @ 0.848
Order avbruten:
Updates - 1 December 2016:
- Yesterday candle closed the gap with a very bearish momentum
- As such, this invalidate my set up and i will cancel my buy stop.
- Might reenter this set up if price action shows another set up at this area
- Yesterday candle closed the gap with a very bearish momentum
- As such, this invalidate my set up and i will cancel my buy stop.
- Might reenter this set up if price action shows another set up at this area
