Do NOT Be Fooled By the H & S Pattern Until the Support Breaks !
Updated
Sure all of the world is noticing is the H & S pattern forming and today is already seems likely that the neckline has been violated and many traders would enter a SHORT position for this pair. However beware of the crucial support that lies just beneath the neckline of this pattern, the crucial 1.14500 level!. Many traders might just get caught out if the price bounces off this crucial support level and therefore being cautious and patience is the only wise choice for many traders.
So how to be cautious you ask? well first of all this is just my personal analytical opinion and therefore before taking any rough action please make your own analysis based on your strategy.
So the analyzing this pair on the daily chart will provide a lot of noise to make accurate decisions and therefore weekly timeframe suits here as the noise would be greatly minimized. First of all the weekly candles should well close below the 1.14500 crucial support, i doubt it will happen this week and so next week could be vital for this to happen. After the weekly candle has closed well below the 1.14500 level it can be confirmed that the support has been violated and the price is ready to break down further.
To make a timed entry into this pair, a slight retracement needs to take place on the daily timeframe so as we can enter the trade. Our SL will always be above the right shoulder. The TP level on this will most likely be at 1.04 level where the next crucial support lies.
Overall its a great set up but caution is necessary in this case. If you are already LONG on the USD (swing trade) then i suggest you do not double your risk by going short here as well. I am already SHORT on the NZDUSD (swing trade) and i would not be taking this trade as i do not want double my risks. For those of you who are willing to take this trade please be advised to take caution and be patient. DONT GET CAUGHT IN THE HYPE!
Cheers. Follow me if you like the analysis and for FX signals
So how to be cautious you ask? well first of all this is just my personal analytical opinion and therefore before taking any rough action please make your own analysis based on your strategy.
So the analyzing this pair on the daily chart will provide a lot of noise to make accurate decisions and therefore weekly timeframe suits here as the noise would be greatly minimized. First of all the weekly candles should well close below the 1.14500 crucial support, i doubt it will happen this week and so next week could be vital for this to happen. After the weekly candle has closed well below the 1.14500 level it can be confirmed that the support has been violated and the price is ready to break down further.
To make a timed entry into this pair, a slight retracement needs to take place on the daily timeframe so as we can enter the trade. Our SL will always be above the right shoulder. The TP level on this will most likely be at 1.04 level where the next crucial support lies.
Overall its a great set up but caution is necessary in this case. If you are already LONG on the USD (swing trade) then i suggest you do not double your risk by going short here as well. I am already SHORT on the NZDUSD (swing trade) and i would not be taking this trade as i do not want double my risks. For those of you who are willing to take this trade please be advised to take caution and be patient. DONT GET CAUGHT IN THE HYPE!
Cheers. Follow me if you like the analysis and for FX signals
Note
Price of weekly candle has closed well below the crucial 1.14500 support. now i am waiting for the price to retrace back to at least 1.14500 before going short on this famous pair. stay tuned for updatesNote
TRADE TYPE: SELL LIMITCAPITAL RISK MAXIMUM 1 %
SELL LIMIT PRICE: 1.14500
SL: 1.15800
TP: 1.0400
RISK REWARD: 1:9
TP LEVELS WILL BE ADJUSTED LATER DEPENDING ON THE FUNDAMENTAL FACTORS AND TECHNICAL.
Order cancelled
Please Note that i am personally not going to take this trade as i am already LONG on the USD (NZDUSD Short trade running) I do not wish to risk my capital twice. For those of you however who are not LONG on the USD yet, this trade is a great opportunity. The above comment is just my suggestion for the TP & SL Levels. But you can ideally place your SL above the right shoulder of the pattern and TP level to 1.0400.You can trail your SL above the 4 hr 50 EMA once the price favors your way. Its just my suggestion and in the end it depends on you
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