Following my last set up on this pair (see below) I am now looking at a potential short position using the bat formation, using the resistance from the failed high of the previous shark pattern.
It is not often that we take a contradicting position after a successful trade, but in this instance the structure of the pattern is almost perfect. Price is very overbought and it looks like we may be entering a consolidating/ranging market following the pair's bull run since the beginning of 2018. Of course, this will depend on what the candle sticks tell us. I will be watching the 1-hour and 4-hour charts very closely for a potential reversal.
Ideally risk in this case will be 1:3.
Bat Ratios B = 0.382-0.5 C = 0.382-0.886 D = 1.618-2.618 X to D = 0.886
Commento
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Price has approached a key level of monthly resistance. As a result, we may see volatile testing of the area on the 1 hour chart- magnifying the importance of paying attention to the candlesticks.
Ordine annullato
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This setup is no longer valid as pride has surpassed our X point on it's rise. There were no key reversal candles triggering an entry on either the 1hr or 4hr charts, so this was an easy trade to avoid. On to the next one!
haha awesome have been watching your trade setup and consistency. Very discipline trader with tight money management indeed!
pmifsud
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Bearish pinbar on 2 hr chart-imminent move down with stochastic indicating well-overbought
KyleMcQuade
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@pmifsud, since the trade was retesting the resistance I was mainly on the 1hr and 4hr charts. I personally like to wait for definitive engulfing, and/or hammers/hanging men. When the push camento shove, neither timeframe ultimately convinced me that the reversal was going agead at that price. There may still be a reversal now that price has hit resistance, but I won't be entering because the X point has already been re-tested. Rules are rules.