Weekly Analysis – The market pair was initially trading in with a bearish momentum ( lower higher and lower low) till late 2016. As price action did not break previous structure low, it signifies a strong bullish possibility.
Daily Analysis – Knowing that all trades have to be aligned with the bigger time frame, I waited for the market to break key level and retrace ( for better risk/reward ratio) and entered on a smaller time frame. This has brought me a trade with a 1 : 4.64 RR.
Side note: I might exit and not trade my trade once market hit my target.
Daily Chart – Market has been running pretty bullish since late December. It has been breaking previous “structure high” constantly with a nice momentous demand of buyers. This has resulted in a strong short-term bullish characteristic that has a great opportunity to test the September 2017 high (0.745).
1 Hour Chart – As much as the market was really choppy, it respected key areas ~ as stated above on its characteristics. Spotted an engulfing pattern in the key area and decided to take a probability bet on it with a 1:4.37 RR.
Weekly Chart – Market has an overall bearish trend that seems to be really strong since 2008. What does it mean? – Not logical to be holding “long durational” trades that are opposite the trend.
Markets has finally broken off the 3 year consolidation with a classical bullish short-term trend. Current price range that market is in will induce greater volatility, this creates more real & fake opportunities for an entry.
Daily chart – Price action has broke off key level with a head and shoulder pattern . Market seems to have strengthen it’s short-term bullish characteristic, this indicates that market have a higher probability to maintain its run.
Monthly chart, market pair has been in a bearish trend since 1990 and has been trading with very little buyers. What sparked at interest in me to monitor this chart was the sudden price movement last month, where it broke consolidation pattern since 2014.
Price action on the Weekly Chart proved that market has broke key level with a strong momentum. Additionally, market has a large recover leg space for a huge profit taking.
Daily Chart, price action that broke previous bearish candlestick seems to state there isn’t much sellers into this pair as market continues to retrace to key level.
Hope everyone did catch this pair 🙂