A Potential .618 Pullback Trend Continuation Pattern
Updated
Note: I want it to be very clear that this is just me practicing my chart analysis skills, and that I am not taking this trade in real life. I have not back-tested this particular strategy on the EURGBP, so I do not know how likely or unlikely this type of trading strategy would work on this currency pair. That being said, lets jump into the analysis and have some fun.
So price action broke out above the most recent highest high of 0.8974, and then closed above those highs at 0.8984. This leads me to suspect that there is a chance the market could rally even higher due to previous resistance now becoming support. At this time I am simply looking for a trend continuation trade setup to occur, where the market would retrace back into previous structure and the 0.618 Fib retracement level. If that were to happen, I would hypothetically buy long at 0.8918, with a target at 0.8991 and a stop lose below previous structure lows at around 0.8862. It will be very interesting to see what actually happens here, the market could hit my hypothetical entry at 0.8918 and then proceed to rally up to 0.8991 to confirm my analysis, or the market could hit my entry and then continue lower stopping me out at 0.8862. Like I always say no one has a crystal ball, but if you are serious about becoming a consistently profitable trader, than it is incredibly important to practice your chart analysis skills like this by engaging in this kind of practice. So, we'll just have to wait and see what happens. Hope you guys have a great day today, always remember to know the risks and plan accordingly.
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
So price action broke out above the most recent highest high of 0.8974, and then closed above those highs at 0.8984. This leads me to suspect that there is a chance the market could rally even higher due to previous resistance now becoming support. At this time I am simply looking for a trend continuation trade setup to occur, where the market would retrace back into previous structure and the 0.618 Fib retracement level. If that were to happen, I would hypothetically buy long at 0.8918, with a target at 0.8991 and a stop lose below previous structure lows at around 0.8862. It will be very interesting to see what actually happens here, the market could hit my hypothetical entry at 0.8918 and then proceed to rally up to 0.8991 to confirm my analysis, or the market could hit my entry and then continue lower stopping me out at 0.8862. Like I always say no one has a crystal ball, but if you are serious about becoming a consistently profitable trader, than it is incredibly important to practice your chart analysis skills like this by engaging in this kind of practice. So, we'll just have to wait and see what happens. Hope you guys have a great day today, always remember to know the risks and plan accordingly.
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Order cancelled
So, I just wanted to give you guys an update on this analysis I did on July 1st. Unfortunately, the market never got low enough to touch my entry so I never would have been able to get involved hypothetically in this trade. But, on the plus side, my chart analysis was correct with regards to the market continuing in the direction it was previously moving in.
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