EURUSD-D1. Big diamond pattern and other reasons to short

After a big rally this pattern is starting to make a correction.
Looking at W1 chart we see price is bouncing from a strong level of S/R
- MACD extremely overtended and crossing MA
- Stochastics pointing down

Here at D1 chart we have a relatively rare chart formation used in technical analysis. When a diamond top forms, it forms at the conclusion of a long uptrend in price, and it indicates an imminent reversal of the trend. As such, the diamond top formation generates a very strong sell signal.

We have also:
- up trendline broken

We can enter on candle close below pattern or sell right now based on H4 analysis.
First target would be 1.1500
Ideal target shown on chart

Best regards

Kommentera:

Nice move in our direction, moving SL to BE