Long after a second test of the inner up TL at the 78.6 fib. retracement. This is also a Gartley formation as the previous down swing has hit the fib. extension 161.8.
Entry: 1.6070
SL: 1.6019
TP1: 1.6179
TP2: 1.6583
See chart below.
Seems like we have a good setup on EURJPY for a long trade: test of the up TL, 61.8 fib and a past S/R (red line) that is also a weakly S/R, which makes it even stronger.
But:
[ul]
[li] There’s a possibility that we have a H&S broken, which brings extra risk to the trade
[/li][li] The GBPJPY is at a weakly S/R line of 148.00 (red line on the second chart), hence GBPJPY may drop. Since EURJPY and GBPJPY are correlated, so can EURJPY.
[/li][/ul]
What do you think Cadar or anyone here?
I was just about to post this chart a possible setup. I also like it seen that we also have a test of the broken counter down TL. The daily is showing an obvious crown which adds a bit of risk.
See my chart below.
Respectfully with no offence i play inside bars quiet a bit on daily and that was a valid trade in my opinon because you don’t need trendlines for this type of set up just strong lines and that is it. anytime you see a mother candle that has been breached on a strong line it’s something to take note especially with a reversal pin bar. But like you said when they all come together trndlines and sr you have something.Appreciate your feedback- keep it coming good observation.
Shorted USDJPY at 99.35, SL=99.80 (45 pips), PT1=98.80 (55 pips), PT2=98.15 (120 pips).
Reason: the break of an up TL, S/R, (almost) 61.8 Fib.
I’m in this one also. The market is a bit away from the 4H TL but on the 1H there is an inner TL that its just below.
Below is another great entry taken on euraud(61.8 retrace to the down TL) its now testing the previous low on its way to the extension 161.8.
I think the EURAUD trade is better because 1) we have a confluence of better Fib levels; 2) we are in a downtrend on D1. In contrast, we are in an uptrend on USDJPY on D1 that adds a good risk.
My first PT has been hit for 55 pips profit, SL has been moved to b/e. But I think it was a risky trade because it was taken in the direction opposite to the direction of the daily trend.
Hi Volodja,
Appreciate the input however i must ask, can you please make your charts cleaner on the eye? I have a hard time seeing exactly what you have on your charts because the colours of candles and TL’s seem to clash, how far out you are zoomed and even the size of the pics that get posted here are all making it hard for me to see what you are seeing.
(I hope that is not old age setting in. Hmmm I’m not that old)
Or maybe you could label the charts at the positions you talk about so I can see it clearer… That might help
Also do you enter on CF’s at all or just the bounce off a fib/TL?
Regards, Juicyt
Long on the test of the broken trendline which is also a broken pennant line at the fib. 61.8.
See chart below.
This pair is showing a short entry as the market is now testing the current down TL on the 4H and also testing the broken daily up trend line. At this level we also have past support now resistance.
See charts below.
Hi Juicyt!
Unfortunately the pictures are automatically reduced in size after having been uploaded here. I’ll see how to make them more clear.
Also do you enter on CF’s at all or just the bounce off a fib/TL?
In the two trades that I posted here I didn’t wait for CFs. Confluence of the direction of a TL, its test, Fib levels, and S/R seem to give enough reason to open a position. And it’s often the case that after a proper CF has been formed, we appear in a situation when a potential risk is almost the same as (or even higher than) the distance to the areas where the price may experience difficulties breaking through. So, it may be not a proper place to open an order in terms of risk, and the whole trade may be missing, as a result.
Missed this trade yesterday (EURNZD). The down TL has been tested at a point where a S/R (the blue line) (almost) meets 61.8 Fib level. The trade would have been in harmony with the daily trend.
Below is the 4H chart of the pair.
The test in question happened soon after the down TL has been tested (from above) for the first time, yet at the same level that first bounce has happened. Why didn’t this stop you from opening the order?
Cadar, did you also base your trade on the blue line (see chart below), and did you trade the first test of the down TL (from above)?
Attached is the 4H chart of GBPCAD.
I dont get your first question. The entry was base on the test of the broken down TL and the fibs. The first test was also a valid entry.
Short at the 38.2 fib retracement, test of the broken trend line, market is also below the current down trend line.
See chart below.
Looks like there is a good opportunity to go long GBPJPY. Reason: the test of an up TL, S/R, 61.8 Fib.
I placed my buy limit order at 141.90 with SL=50 pips, PT1=144.10 (220 pips), PT2=146.00 (410 pips). Below is the 4H chart of the pair.
Good heads up. There is also a Gartley(161.8 extension converge with the retrace 61.8) formation on this pair. See chart below.
Once I saw the price heavily dropping on the 5Min time frame, I moved my entry point lower to 141.70. The bounce off of the up TL was accompanied with a high volume that increased the “pros” for this trade (although in a short term perspective).
Entry: 141.70
SL: 141.20 (50 pips) (currently 141.71)
TP1: 144.10 (240 pips)
TP2: 146.10 (440 pips)
Attached is the 5-minute chart of the pair.
did u close the initial buy-order(141.90) with profit or u gave 150pips back to the mkt?
Your entry strategy is interesting but if not well managed could give repeatedly losses… Many trade like that but with more manageable profit tgt and moreover the main AB boundary in GY hasnt reached its tgt on 1hr TF so the reason for the bull back…
But nice entry… good spot… nice gartley pull back to give a trade in the present trend.
cheers