EURCHF, 1h, potential Bat pattern

8 giu 2018

If you look at the 4h timeframe, we have had a pullback from a downtrend. If you go up another step to Daily timeframe, we've had a pullback from a uptrend - so the timeframes are a bit contradictory.
This is also seen in the 1h timeframe where we recently had a more consolidating period. This allows both a bearish pattern or, as in this case, a bullish pattern to work well.
It is often in consolidating periods that patterns show their best side when using standard target prices (38.2% and 61.8%).

Awaiting test of the entire PRZ where the defining level is the Bat pattern 88.6% (XA).

As always, a "type-1" trade is more aggressive when it comes to trail the reaction and picking a profit if you see a slowdown in the reaction.
(Of course, this is something you should have in your trading plan and tested - so you know how aggressive you can be without losing your "edge".)

Stop loss placed below X but keep it tight.
Target prices are standard 38.2% and 61.8% for a second position.