EURUSD 4H Bat Pattern Trade

EURUSD SHORT IDEA (BAT PATTERN) – 12-Oct-2015

EURUSD 4H Bat Pattern Trade

Reasons For Trade:

1. Bat Pattern
2. Close Fibonacci Confluence of 0.886XA leg with 1.618 AB leg
3.  RSI has been overbought i.e. above 80

Stop Placement:

  1. 1.113 or 1 ATR (37 Pips) above Structure High i.e. Point X of Bat Pattern

Targets:

  1. 38.2 Fib Retracement of AD Leg will be the first target
  2. 61.8 Fib Retracement of AD Leg will be the second target

Trade Execution:

  1. Let the price reach the PRZ and look for Double Top or Bearish Divergence or an Advanced Harmonic Pattern completion in the zone on a lower time frame i..e. 1H or 15M chart.
  2. As soon as Target 1 is hit, move the stop to break even and close half of the position.

Concerns:

  1. Overall trend seems to be bullish at the moment. So this will be a counter trend trade. Second Target may not be achieved.

Planned News Expected: (UK Time)

None

Post Execution Review:

Pending

---------------------------------------------------------------------------------
Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------
887 Total Views 9 Views Today
Short URL for this post: http://goo.gl/NFl9Xn

Related Posts