EURUSD - HEAD & SHOULDERS - BULL MARKETING ENDING
The
EURUSD
was in a decade long downtrend between 2010 (see linked idea where I profited for 5 years). But that bear channel ended when the bull market exploded to the upside during March 20 but is that about to end?
After hitting major weekly resistance at 1.22 we've now attempted to retest that high many times and in doing so have formed a Head and Shoulders pattern, indicating that this bull has outrun its course and we could now continue on the decline back down to the previous lows towards parity next year and beyond.
Before entry, I will be looking for a breakthrough of the neckline and if you want to make really sure, look for two touches of the neckline as resistance, but I have a lot of experience where that opportunity hasn't presented itself and we've dropped like a brick into the void below.
My stop loss will be placed above the left shoulder at 1.2 (approximately a 50% pullback) with the profit target down at 1.15, 1.14 and the ultimate target down at the total length of the neckline at 1.12
As always I'm looking for price action daily time frame, so if you're losing a lot, you're trading on too small a time frame, 1h and 4h is for shorter trades with a much higher risk, I prefer lower risk and higher reward targets with a risk-reward of a minimum of 1-3.
EURUSD
was in a decade long downtrend between 2010 (see linked idea where I profited for 5 years). But that bear channel ended when the bull market exploded to the upside during March 20 but is that about to end? After hitting major weekly resistance at 1.22 we've now attempted to retest that high many times and in doing so have formed a Head and Shoulders pattern, indicating that this bull has outrun its course and we could now continue on the decline back down to the previous lows towards parity next year and beyond.
Before entry, I will be looking for a breakthrough of the neckline and if you want to make really sure, look for two touches of the neckline as resistance, but I have a lot of experience where that opportunity hasn't presented itself and we've dropped like a brick into the void below.
My stop loss will be placed above the left shoulder at 1.2 (approximately a 50% pullback) with the profit target down at 1.15, 1.14 and the ultimate target down at the total length of the neckline at 1.12
As always I'm looking for price action daily time frame, so if you're losing a lot, you're trading on too small a time frame, 1h and 4h is for shorter trades with a much higher risk, I prefer lower risk and higher reward targets with a risk-reward of a minimum of 1-3.
Handel aktiv:
Trade active at 1.88, in early, based on price action on the DXY upside. Important for this trade to be valid that we break the baseline and it then become resistance, long term trade and a whole lot of profit potential
Kommentera:
Still in profit and I'm waiting for the neckline to breakdown over the coming weeks
Kommentera:
It took a while but the forecast was very accurate and this one trade alone as 7x profits
Kommentera:
So my long term head and shoudlers pattern is finally pulling off with the USD and the EUR hitting parity today. Fantastic hold on the trade.
